How Can a Stock Have Different Risk Characteristics in and Out

question 169

Essay

How can a stock have different risk characteristics in and out of a portfolio?

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Definitions:

Condition

An essential term of a contract.

Replacement Warranty Clause

A provision in a contract or agreement guaranteeing the replacement of defective goods or services within a specified period.

Rescind

To revoke, cancel, or repeal a contract, agreement, or resolution, effectively rendering it null and void.

Defective Parts

Components of a product that are faulty, malfunctioning, or fail to meet quality standards.