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Lydia works as a senior network administrator and is dissatisfied with the stifling bureaucratic environment of her job. She is considering venturing out on her own as a consultant. If she carries through with her intentions, she would be considered a(n)
Holding Period
The length of time an investment is held by an investor before being sold, which can affect tax treatment and investment strategy.
Correlation Coefficients
A measure that indicates the extent to which two variables change together, ranging from -1 to 1, where 1 means perfect positive correlation, and -1 means perfect negative correlation.
Diversification Benefits
The reduction in investment risk that is achievable by holding a variety of different investment instruments that have low correlation with each other.
Characteristic Line
A line generated in a statistical chart that shows the relationship between the returns on a security or portfolio and the returns on the overall market.
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