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Expected Return
The weighted average of all possible returns, with weights equal to the probabilities of each outcome.
Equally-Weighted
An investment strategy where each security is assigned the same weight or importance in a portfolio, promoting diversification.
Risk-Free Asset
An investment with a certain return, usually with low returns, considered to have negligible risk, such as government bonds.
Expected Return
The anticipated value or profit gained from an investment over a specified period, considering all possible outcomes.
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