Examlex
The formation of concepts involves the development of the best or clearest examples of such categories, called
Passive Investment Strategy
Investing in a diversified portfolio or market index without attempting to search out mispriced securities.
Active Strategies
Investment tactics that involve ongoing buying and selling actions by the manager or investor in an attempt to outperform the market or a specific benchmark.
Portfolio Beta
A measure of a portfolio's volatility or systemic risk compared to the overall market; a beta above 1 indicates higher than market volatility.
Risk-free Rate
The theoretical return on investment with no risk of financial loss, often represented by the yield of government bonds like U.S. Treasury bills.
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