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A series of strong storms opened a stream channel between two lakes.The western lake contains a large,diverse population of a species of minnow.The eastern lake has never been populated by fish.When the channel opened,a small group of fish migrated to the eastern lake.Soon after,the stream channel dried up and was never opened again.The fish in the eastern lake thrived and continued to reproduce,building a large population over time.Compared with the fish in the western lake,what characteristics would you expect the population in the eastern lake to exhibit?
Real Rate of Return
The yearly rate of return on an investment, corrected for price changes stemming from inflation or external factors.
Annual Interest Rate
The percentage of the principal that is paid as interest to the lender over the course of one year, not accounting for compounding.
Value at Risk (VaR)
Measure of downside risk. The loss that will be incurred in the event of an extreme adverse price change with some given, typically low, probability.
Standard Deviation
A statistical measurement that sheds light on historical volatility.
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