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Efficient Markets Hypothesis
The theory that all available information is fully reflected in asset prices, meaning that it's impossible to consistently achieve higher-than-market returns.
Firm-Specific Risk
Risk that affects only a single company
Market Risk
The possibility of an investor experiencing losses due to factors that affect the overall performance of the financial markets.
Diversification
A risk management strategy that mixes a wide variety of investments within a portfolio to minimize the impact of any single asset's performance on the overall portfolio returns.
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