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_____  Involves Dividing a Portfolio Among Different Classes of Securities

question 4

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_____  involves dividing a portfolio among different classes of securities in order to preserve the capital by protecting the portfolio against negative market developments.


Definitions:

Balance Theory

A psychological theory suggesting that individuals strive for consistency among their beliefs, attitudes, and sentiments in a triadic relationship.

Triad

In social sciences, a group or relationship that involves three entities, which can significantly differ in dynamics from dyads (two entities).

Two-Component Model

A theory or framework that divides a concept or phenomenon into two distinct parts for better understanding or analysis.

Attitude

A psychological tendency expressed by evaluating an entity with some degree of favor or disfavor.

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