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Asset Allocation
The strategy of distributing investments among various asset classes, such as stocks, bonds, and cash, to achieve a desired risk-reward balance.
Stock Selection
The process of choosing stocks for investment based on criteria such as financial health, market position, and growth potential to maximize returns.
Bond Selection
The process of choosing bonds for investment based on factors such as yield, maturity, credit quality, and issuer.
Unique Risk
Also known as unsystematic or idiosyncratic risk, it refers to the risk associated with a particular company or industry that can be mitigated through diversification.
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