Instructions: Identify the Following

question 11

Short Answer

Instructions: Identify the following. Be as specific as possible, and include names, dates, and relevant facts as appropriate. Be sure to explain the significance of the person or term.
John L. Sullivan

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Definitions:

Mutual-fund Theorem

A principle in finance that suggests diversifying investments across a broad range of assets to reduce risk without sacrificing return, associated with the modern portfolio theory.

Passive Investment Strategy

Investing in a diversified portfolio or market index without attempting to search out mispriced securities.

Active Strategies

Investment tactics that involve ongoing buying and selling actions by the manager or investor in an attempt to outperform the market or a specific benchmark.

Portfolio Beta

A measure of a portfolio's volatility or systemic risk compared to the overall market; a beta above 1 indicates higher than market volatility.