Role-Play Can Be Used

question 45

Multiple Choice

Role-play can be used

• A) for diagnostic purposes.
• B) for evaluating the effectiveness of therapy.
• C) to prepare candidates for debates.
• D) All of these

---

Definitions:

Treynor-Black Model

A portfolio optimization model that blends a risky asset portfolio optimized for maximum Sharpe ratio with a risk-free asset.

Full Diversification

The process of spreading investments across various assets to reduce exposure to risk from any single asset.

Nonsystematic Risk

The risk associated with an individual investment or a small group of investments, which can be mitigated through diversification.

Treynor-Black Model

An optimization tool used by portfolio managers to balance the trade-off between risk and return by combining actively selected securities with a passively managed market portfolio.