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If the price of grapefruit rises, the substitution effect due to the price change will cause
Risky Assets
Financial instruments that carry a higher degree of risk compared to risk-free assets, potentially leading to higher returns or losses.
Standard Deviation
Standard deviation is a measure of the dispersion or spread of a set of data points, often used in finance to gauge the volatility of an investment's return over time.
Variance
A statistical measure of the dispersion of returns for a given security or market index, indicating the degree of volatility.
Portfolio Diversification
The practice of investing across different financial assets to reduce risk by spreading exposure.
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