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Well-Diversified Portfolio
A portfolio that contains a wide variety of investments across different asset classes and sectors to minimize risk.
Single Index Model
A simplified financial model that describes the return of a security as a linear function of the return of a market index, plus some idiosyncratic noise.
Well-Diversified Portfolio
A collection of investment assets reduced in risk through spreading investments across various securities, sectors, or asset classes.
Single Index Model
A simplification of market models that uses a single factor (usually a market index) to model all securities' returns.
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