Examlex
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Diversification
Diversification is an investment strategy that aims to reduce risk by allocating investments among various financial instruments, industries, geographic locations, or other categories.
Portfolio
A collection of investments, such as stocks, bonds, commodities, and real estate, held by an individual or an institution.
Index Model
A statistical model to estimate the returns of a stock based on the returns of a broader market index.
Covariance
A measure of the degree to which two variables move together. In finance, it is used to measure how returns on two assets are related.
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