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The faster-moving star in a binary is
Standard Deviation
A metric assessing how much a group of data points or investment yields spread out or differ from each other.
Investment Opportunity Set
The range of possible investment options available to an investor, based on their risk tolerance and investment objectives.
Efficient Frontier
A graph representing the set of portfolios that provides the highest expected return for a defined level of risk or the lowest risk for a given level of expected return.
Capital Market Line
A line that depicts the risk-reward profile of investable assets, showing the rate of return for varying levels of risk, based on the market risk premium and the risk-free rate.
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Q62: Suppose you observe three star clusters.Cluster 1