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Investing involves balancing risk and return, with traditional graphs suggesting that taking on more risk leads to higher returns. However, a probabilistic distribution offers a clearer picture, showing that increased risk widens the outcomes, some resulting in higher returns while others in lower ones. Standard deviations play a key role in measuring how outcomes deviate from the mean value, with a greater deviation indicating higher investment risk. Successful investors like Warren Buffett focus on scenarios where losses are minimal, emphasizing the importance of assessing risk-return probabilities.