A Technology Fund Is an Example of a Sector Fund

question 65

True/False

A technology fund is an example of a sector fund.

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Definitions:

Systematic Risk

The risk of a portfolio associated with market movements that cannot be eliminated through diversification.

Expected Return

This is the anticipated value or profit that an investment will generate over a certain period, factoring in the probabilities of various outcomes.

Risk-free Rate

The return on investment considered completely free of risk, such as the return on government bonds in stable financial systems.

Economic Factors

Various elements such as inflation, unemployment rates, and GDP growth that influence the economic environment.