What Are the Five Factors in the Five-Factor Model

question 105

Multiple Choice

What are the five factors in the five-factor model?

• A)Types of intelligence
• B)Abilities
• C)Stress and coping processes
• D)Dimensions/traits

Explore the impact of mixing risk-free and risky assets on a portfolio's risk and return.

Recognize the role of diversification in managing portfolio risk.

Identify the mathematical relationships used to determine the standard deviation of a portfolio's return.

Compare and contrast the effects of different asset combinations on portfolio variance.

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Definitions:

Mean

The average of a set of numbers, calculated by dividing the sum of these numbers by the count of the numbers in the set.

Risk-Free Asset

An investment with a guaranteed return and no risk of financial loss.

Expected Rate

The anticipated yield or return on an investment, loan, or other financial products over a specific period.

Standard Deviation

A measure of the dispersion or variation in a set of values, indicating how much the values differ from the mean.