Examlex
Which of the following is TRUE?
Beta
An indicator of the fluctuation or inherent risk of a security or portfolio compared to the overall market.
Firm-specific Risk
The portion of an investment's risk that is attributable to the unique circumstances of the specific company, as opposed to market-wide risk.
Diversification
Diversification is an investment strategy that involves spreading investments among various financial instruments, industries, and other categories to reduce exposure to any single asset or risk.
Portfolio
A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange traded funds (ETFs).
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