Examlex
Please define the following key terms. Show Who? What? Where? When? Why Important?
-Angela Merkel
Time Value
The idea that having money presently is more valuable than possessing an identical sum later on because of its capacity to generate earnings.
Systematic Risk
The risk inherent to the entire market or market segment, also known as market risk, which cannot be mitigated through diversification.
Diversification
The process of allocating investments among various financial assets to reduce risk and improve potential returns.
Diversifiable Risk
A risk that can be reduced or mitigated through the diversification of investments in a portfolio.
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