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Finance Functions in a Two-Parameter World of Risk and Return

question 62

Essay

Finance functions in a two-parameter world of risk and return.Define risk and return in a financial sense and discuss how these two concepts are "joined at the hip."


Definitions:

Discriminant Analysis

A statistical technique used to classify observations into predefined categories based on several predictor variables.

Multiple Regression

A statistical technique whereby several variables are used to predict one.

Analysis of Variance

A statistical method used to compare the means of three or more samples to understand if at least one of the sample means significantly differs from the others.

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