Examlex
Which of the following is FALSE?
Diversification
The process of allocating investments across various financial assets to reduce the risk exposure of a portfolio.
One-Factor APT
The Arbitrage Pricing Theory that describes the expected return of a financial asset in relation to a single systematic risk factor.
Factor Portfolio
An investment portfolio constructed to have a high sensitivity to certain risk factors, aiming to achieve specific investment outcomes.
Unsystematic Risk
The risk associated with a specific issuer of a security, such as a company's management decisions or financial health, distinct from market-wide risks.
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