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Why Did the Framers Fear the Formation of Political Parties

question 28

Essay

Why did the framers fear the formation of political parties? Provide at least two reasons.


Definitions:

True Beta

A measure of a stock's volatility in relation to the market, adjusted for its unique characteristics and the market environment.

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.

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