Examlex
The histogram below shows the distribution of the assets (in millions of dollars) of 71 companies. Does the distribution appear to be normal?
Economic Downturn
A period of reduced economic activity characterized by declines in spending and investment, often leading to recession.
Diversification
A risk management strategy that mixes a wide variety of investments within a portfolio to reduce exposure to any single asset or risk.
Diversifiable Risk
A type of risk that can be reduced or eliminated from a portfolio through investments in a variety of assets, also known as unsystematic risk.
Arbitrage Pricing Model
A theory for asset pricing that takes into account multiple risk factors and the return of an asset, assuming no arbitrage opportunities.
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