Examlex
Solve using the multiplication principle.
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Well-Diversified Portfolio
A collection of investments that spans various assets to minimize risk while maximizing returns.
Single Index Model
A simplified model to estimate the return of a security based on the return of the market as a whole and the security's sensitivity to the market.
Portfolio's Sigma
A statistical term that represents the standard deviation of returns of an investment portfolio, reflecting its risk.
Mean-Variance Efficient Portfolio
A portfolio construction theory that suggests the best investment portfolio is one that offers the highest expected return for a given level of risk or the lowest risk for a given level of expected return.
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