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Which of the following is the acid found in our stomachs?
Risk Aversion
A preference for certainty over uncertainty, with individuals choosing investments that offer a lower potential return with known risks over riskier ones.
Expected Loss
The calculated financial loss anticipated from an investment or action, considering the probability and magnitude of losses.
Expected Return
The weighted average of all possible returns for a financial investment, with each return's weight being its probability of occurrence.
Standard Deviation
A measure of the amount of variation or dispersion of a set of values, indicating how spread out the values are from the mean.
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