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A consumer is reading a magazine with an advertisement, but due to a loud sound he is distracted from reading the advertisement and is not able to grasp its key points. In the context of the communication process, this unplanned static or distortion is called ________.
Covariance
A measure of the degree to which two variables move in relation to each other, indicating the direction of their relationship.
Expected Return
The anticipated return on an investment, averaging in the probability of different outcomes.
Optimal Risky Portfolio
A portfolio construction that maximizes expected return for a given level of risk, based on modern portfolio theory.
Risk Free Rate
The theoretical return on investment with zero risk of financial loss, often represented by the yield on government bonds from stable governments.
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