Updated Alchemy.
Now you can combine 4 effects.
Combining more than two ingredients that give the same effect and the potions become stronger.

There are Recipes for potions, when you look in some containers.
If you boost your Wisdom or Intelligence, your potions becomes stronger.

Potions with more different effects give 50% more Experience/effect.
And the price for potions have been change, and rises when you have more effects.

Updated Armor and Deflection:
You have a % chance to deflect attacks, equal to your armor.
But never over 90%.

You can Deflect magic attacks.
The % is written on the Effect screen [f2].

Take the Perk 'Evade' and you have a better chance of evading magic attacks.
Boost your Wisdom, and you also improve your chance to deflect magic attacks.
But never over 90%.