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Explain the concepts of proportionality, additivity, and divisibility.
Best-Fitting Line
A line through a scatter plot of data points that best expresses the relationship between those points.
Observed Errors
The discrepancies between measured values and their true, expected, or theoretical values.
Systematic Risk
The risk inherent to the entire market or market segment, not reducible by diversification.
Stock Price
The cost of purchasing a share of a public company's stock, which fluctuates based on market demand and other factors.
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