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A Proposition That Can Be Tested by Researchers or Observers

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Short Answer

A proposition that can be tested by researchers or observers to determine if it is valid is a .


Definitions:

Positive Expected Return

A projection that an investment will yield a return above the initial outlay.

Risk-Free Arbitrage

The practice of profiting from price differences in different markets or forms without risk.

Benchmark Portfolio

Portfolio against which a manager is to be evaluated.

Well-Diversified

Refers to an investment portfolio that contains a wide variety of assets to minimize risk.

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