eriods to annual returns? How do we define risk? What type of investment had the highest return on average and the largest variance from 1950 to 1999?...
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-What are the two parameters for selecting investments in the

finance world? How do investors try to get the most out of their investments with regard to these two parameters?
-What are the two ways to measure performance in the finance world?
-Why is it not practical to convert holding period returns from very short periods to annual returns?
-How do we define risk?
-What type of investment had the highest return on average and the largest variance from 1950 to 1999? How much did this investment vary over that fifty-year period?
-What is one of the problems of dealing with an event that has a large number of potential outcomes?
-What are the two investment rules, and how do they influence choices when considering a pair of potential investments?

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