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Factor Portfolio
Factor Portfolio refers to a collection of financial assets that is constructed to have specific common characteristics, often used in factor investing.
Security Mispricing
The phenomenon when a security (stock, bond, etc.) is priced above or below its intrinsic value.
Risk-Free
Pertaining to an investment with guaranteed returns and negligible risk of financial loss.
Economic Profits
Profits or losses calculated by considering both explicit costs, such as direct expenses, and implicit costs, like opportunity costs.
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