Briefly Define the Following Terms in Your Own Words

question 4

Essay

Briefly define the following terms in your own words:
a) Confidence interval
b) The confidence level associated with a confidence interval
c) The margin of error associated with a confidence interval

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Definitions:

Security Selection

Choice of specific securities within a given asset class.

Planning Phase

The initial stage in a project or strategic process where objectives are defined, strategies are developed, and tasks and schedules are planned.

Optimal Asset Allocation

The mix of assets that is expected to provide the highest return for a given level of risk or the lowest risk for a given level of expected return.

Security Selection

The process of choosing individual securities for investment in order to achieve the best possible return.