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The dog in Pavlov's experiment, that only salivated when the original-and no other-bell was rung, had shown the ability to
Risk-Free Rate
Refers to the return on investment with no risk of financial loss, often estimated by the yield of government bonds.
Market Portfolio
A theoretical bundle of all available assets in the market, representing the entire stock market and used as a benchmark to assess investment performance.
Efficient Frontier
A concept in modern portfolio theory that represents portfolios offering the highest expected return for a given level of risk or the lowest risk for a given level of expected return.
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