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The ____________ Effect States That the First Item in a Long

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Short Answer

The ____________ effect states that the first item in a long list of items is the one most likely to be remembered.


Definitions:

Complete Portfolio

A diversified investment portfolio that includes a wide range of asset classes balanced according to an investor's risk tolerance and financial goals.

Risky Assets

Investments that carry a significant possibility of losing all or part of the initial investment.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, typically represented by the yield on government bonds.

Optimal Risky Portfolio

A portfolio of investments that maximizes expected return for a given level of risk by carefully selecting and weighting risky assets.

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