Please Define the Following Key Terms

question 17

Short Answer

Please define the following key terms
-Tawakkol Karman

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Definitions:

Security Selection

The process of choosing individual securities for investment with the goal of achieving the best possible return for a given level of risk.

Passive Strategy

A portfolio decision that avoids any direct or indirect security analysis. See passive management.

Index Funds

Investment funds designed to replicate and track the components of a market index.

Sharpe Measure

A financial metric used to measure the performance of an investment compared to its risk, indicating how much excess return you are receiving for the extra volatility endured by holding a riskier asset.