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Case 6-1 Your Friend Jennifer Has a Lot of Experience with Merging

question 25

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Case 6-1
Your friend Jennifer has a lot of experience with merging form letters and data sources,so when you have an important project to work on like this,she is the person to whom you turn with your questions.Your first hurdle to get over is the creation of the data source.
-You have started to get a little confused by the terminology because there seem to be so many new terms introduced with this concept.When you ask Jennifer for clarification,which one of the following terms does she say does not mean the same as the other three?


Definitions:

Nonsystematic Variance

The portion of an investment's variance that is attributable to the investment's specific factors, as opposed to the overall market movement.

Market Index

A market index is a hypothetical portfolio of investment holdings which represents a segment of the financial market.

R-squares

A statistical measure in finance that represents the proportion of the variance for a dependent variable that's explained by an independent variable or variables in a regression model.

Portfolio Performance

The assessment of how an investment portfolio has done in terms of returns for the risk taken, often compared against benchmarks or goals.

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