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Least Squares Method

Curve fitting is a mathematical method used to approximate a curve that accurately represents a set of data points. This is achieved by minimizing the sum of the squared differences between the curve and the given points. This technique is essential in finance as it helps to predict future trends and make informed investment decisions. It is a powerful tool in analyzing market data and can greatly benefit financial professionals.
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Investments that provide regular, fixed payments, such as bonds and treasury bills.
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