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How do recent current account deficits compare to GNP and to past ratios?
Two-Asset Portfolio
A financial portfolio consisting of two different assets, aiming to diversify investment risks and returns.
Standard Deviation
A measure of the dispersion or spread of a set of numbers, indicating how much variation exists from the average.
Risky Asset
An investment that holds a degree of uncertainty regarding its returns or principal amount.
Non-Risky Asset
A financial asset with a guaranteed or highly predictable return rate, such as government bonds.
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