Examlex
Which of the following is an emotional disposition that predicts people's general emotional tendencies?
Diversification
A risk management strategy that mixes a wide variety of investments within a portfolio to reduce exposure to any single asset or risk.
Diversifiable Risk
A type of risk that can be reduced or eliminated from a portfolio through investments in a variety of assets, also known as unsystematic risk.
Arbitrage Pricing Model
A theory for asset pricing that takes into account multiple risk factors and the return of an asset, assuming no arbitrage opportunities.
Characteristic Line
In finance, this is a line generated in a statistical plot to describe how the returns of a security relate to the returns of the overall market, used in the Capital Asset Pricing Model (CAPM).
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