A Camera Lens That Acts Like a Telescope to Magnify

question 8

Multiple Choice

A camera lens that acts like a telescope to magnify images is referred to as a

• A)normal lens.
• B)telephoto lens.
• C)wide-angle lens.
• D)zoom lens.
• E)digital lens.

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Definitions:

Unique Risk

Risk that affects a very limited number of assets, often referred to as "unsystematic risk" or "idiosyncratic risk."

Diversifiable Risk

The portion of an investment's risk that can be mitigated or eliminated through portfolio diversification.

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two variables.

Covariance

A measure of how two variables move in relation to each other, used in finance to diversify portfolios and minimize risk.