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Standard Deviation
A measure of the dispersion or variability of a set of data points or investment returns, indicating the degree of risk or volatility.
Risk-Free Asset
An investment with a guaranteed return and no risk of financial loss, typically represented by government bonds.
Capital Allocation Line
A line that graphically represents the risk-versus-return profile of risky assets, and indicates the optimal portfolio of risky and risk-free assets.
Risk-Free Asset
An investment with a guaranteed return and no risk of financial loss, often represented by government bonds.
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