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When a state's population grants it the authority to make rules and to govern,the state has
Risk-Free Rate
The theoretical rate of return of an investment with zero risk, typically associated with government bonds.
Capital Allocation Line
A line on a graph that represents the risk-reward ratio of investments, showing the optimal portfolio mix between risk-free assets and risky assets.
Reward-to-Volatility Ratio
A measure of the return on an investment relative to its risk, often used to compare the performance of investment strategies.
Efficient Frontier
A graphical representation of the set of optimal portfolios that provides the best possible expected return for a given level of risk.
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