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Risk-Averse Investor
An investor who prefers lower risks, often accepting lower returns to avoid potential losses.
Risky Asset
A type of financial instrument or investment that carries a higher degree of risk, potentially leading to greater returns or significant losses.
Risk Free Asset
An investment with a guaranteed return and no risk of financial loss, typically government bonds.
Expected Returns
The anticipated profit or yield from an investment, considering both the risk and the return.
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