The Financial Crisis of 2007-2008 Was Triggered by Problems in the Dot-Com

question 120

True/False

The Financial Crisis of 2007-2008 was triggered by problems in the dot-com sector of the economy.

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Definitions:

Portfolio

A group of individual assets held in combination. An asset that would be relatively risky if held in isolation may have little, or even no risk, if held in a well-diversified portfolio.

Beta

A measure of a stock's volatility in relation to the overall market, used in the capital asset pricing model to determine expected return.

Marginal Investor

An investor whose actions and decisions regarding buying or selling a security are believed to represent the overall market sentiment.

Risk Averse

Risk averse describes an individual or entity that prefers to minimize risk, opting for lower returns with known risks rather than higher returns with unknown risks.