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Suppose that, using linkage analysis, a researcher finds that family members with a high likelihood of developing depression also are very likely to be of below average height. This would mean
Diversify
Diversify refers to the strategy of spreading investments across various financial instruments, industries, and other categories to reduce exposure to risk.
Efficient Frontier
In portfolio theory, it represents the set of optimal portfolios that offer the highest expected return for a given level of risk or the lowest risk for a given level of expected return.
Risky Assets
Investments with a high degree of uncertainty in their returns, usually implying a greater potential reward.
Investment Opportunity Set
The array of all possible investment combinations available to an investor considering both risk and return.
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