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The Flemings Will Need $80,000 Annually for 20 Years During

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The Flemings will need $80,000 annually for 20 years during retirement.How much will they need at retirement if they can earn a 4% rate of return?


Definitions:

Correlation Coefficient

The correlation coefficient is a statistical measure that calculates the strength and direction of a linear relationship between two variables on a scale of -1 to 1.

Covariance

Covariance is a measure used in statistics to determine how two variables move in relation to each other, often used in portfolio theory to assess risk.

Reward-to-Variability Ratio

A measure of the return on an investment relative to its risk, higher values indicate better risk-adjusted returns.

Standard Deviation

A statistical measure that quantifies the variability or dispersion of a set of data points or the volatility of an investment's returns.

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