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The Ability of a Person, Group, or Institution to Use

question 46

Multiple Choice

The ability of a person, group, or institution to use action or influence to affect change is known as:


Definitions:

Market-Neutral

Market-neutral is an investment strategy or portfolio designed to neutralize certain market risks by taking offsetting positions, aiming to achieve returns largely independent of the overall market movement.

Risky

Involving exposure to danger or financial loss probabilities.

Financial Intermediary

An intermediary that buys securities with funds that it obtains by issuing its own securities. An example is a common stock mutual fundthat buys common stocks with funds obtained by issuingshares in the mutual fund.

Financial Assets

Assets that derive value because of a contractual claim, such as stocks, bonds, bank deposits, and mutual funds.

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