The Inability of Indigenous Tribes of the Rain Forest to Keep

question 54

True/False

The inability of indigenous tribes of the rain forest to keep pace with modern Western societies is called cultural lag.

---

Definitions:

Systematic Risk

Refers to the risk inherent to the entire market or market segment, which cannot be mitigated through diversification.

Diversification

The process of allocating investments across various financial assets to reduce the risk exposure of a portfolio.

One-Factor APT

The Arbitrage Pricing Theory that describes the expected return of a financial asset in relation to a single systematic risk factor.

Factor Portfolio

An investment portfolio constructed to have a high sensitivity to certain risk factors, aiming to achieve specific investment outcomes.