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If where k is a constant.
Expected Return
The weighted average of all possible returns for an investment, factoring in the probabilities of each outcome.
Risky Asset
An asset that has a significant degree of risk associated with it, meaning there is a higher chance of losing some or all of the original investment.
Expected Rate of Return
The anticipated return on an investment, based on historical data, analysts' estimates, or a model's inputs.
Risky Securities
Financial instruments that carry a higher risk of loss, often associated with higher potential returns.
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