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An Individual Is Considered to Materially Participate in an Activity

question 87

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An individual is considered to materially participate in an activity if any of the following tests are met with the exception of


Definitions:

World Equities

Refers to stocks and equity securities from companies around the globe, allowing investors to diversify their portfolio internationally.

Home Bias

The tendency of investors to allocate a greater share of their portfolios to domestic securities than would be the case under neutral diversification.

Overweight Investments

An investment strategy where a portfolio holds a higher percentage of a particular security or sector than the benchmark against which it is compared.

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