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Likely,the Most Used Form of Performance Appraisal (Though Not Necessarily

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Likely,the most used form of performance appraisal (though not necessarily the most effective) continues to be the


Definitions:

Efficient Frontier

A portfolio optimization concept that plots the best possible return for a given level of risk based on various asset combinations.

Optimal Risky Portfolio

The optimal risky portfolio is the combination of risky assets that provides the highest expected return for a given level of risk or the lowest risk for a given level of expected return.

Risk Free Rate

The theoretical rate of return of an investment with zero risk, often represented by the yield on government securities like U.S. Treasury bonds.

Standard Deviation

A statistical measure that quantifies the variation or dispersion of a set of data points.

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