as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
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explain the concept of "local maximum".
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a local maximum is a point in an optimization problem at which the value of the objective function is higher than the values at any of its neighboring points. it is also known as a 'relative maximum'. in other words, it is the highest value in the immediate area. a global maximum is the highest value for the entire problem domain.
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