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Trading Terms

Ratio

This is referred to as proportion Proportion, in finance, refers to the relationship between two quantities of the same nature in terms of size or numerical value. It is a crucial concept that helps us understand the relative significance of two related variables. For instance, in investment, the proportion between risk and return is a key consideration. Proportion is an important tool in financial analysis, and a deeper understanding of its applications can lead to effective decision-making.
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