Examlex
The graph presented below represents the post-test FER data, but what is its correct title?
Single Index Model
A simplified financial model that describes the return of a security as a linear function of the return of a single market index, plus some random noise.
Portfolio
A diverse collection of investments held by an individual or institution, including stocks, bonds, real estate, or other financial assets, designed to reduce risk and achieve specific financial goals.
Beta
A measure of the volatility, or systemic risk, of a security or a portfolio in comparison to the market as a whole.
Beta
A gauge for the level of volatility or systematic risk associated with a security or portfolio against the backdrop of the broader market.
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