Portfolio Diversification Often Focuses on Cross-Industry Diversification to Pick Up

question 16

Essay

Portfolio diversification often focuses on cross-industry diversification to pick up correlation coefficients and risk-expected return characteristics that create the portfolio effect. Suggest a realignment of "industry" classifications to reflect fundamental relationships sought through the more casual traditional industries.

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Definitions:

Periodic Revision

The regular updating or amendment of a document, system, or process to reflect changes or improvements.

Emotionally Charged

Something that is emotionally charged carries a strong emotional significance or elicits a strong emotional response.

Cross-race Identifications

The phenomenon where individuals are less accurate in recognizing faces of people from races other than their own.

Misidentifications

Misidentifications involve the incorrect recognition or identification of people, objects, or events, often occurring in psychological disorders.