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What is the function of the lens of the eye?
Asset Allocation
Allocating a portfolio across broad asset classes such as stocks versus bonds.
Risk-Free Asset
An investment with a guaranteed return and no risk of loss, often exemplified by government bonds of stable countries.
Risky Asset
An investment that holds some risk of losing value, as opposed to a guaranteed or risk-free asset, offering potentially higher rewards in exchange for higher risk.
Expected Return
The weighted average of the probable returns of an investment, where the weights correspond to the probability of each outcome.
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