The Process of Defining One or More Subtypes of a Supertype

question 68

Multiple Choice

The process of defining one or more subtypes of a supertype and forming relationships is called:

• A) specialization.
• B) generalization.
• C) creating discord.
• D) selecting classes.

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Definitions:

Opportunity Sets

The array of possible investment opportunities or combinations that are available to an investor.

Systematic Risk Principle

A principle stating that investors need to be compensated for taking on increased levels of undiversifiable risk.

Not Correlated Stocks

Stocks whose price movements are independent of each other, indicating no direct relationship in their performance.

Volatility

The degree of variation of a trading price series over time, usually measured by the standard deviation of logarithmic returns.