Industry Convergence Happens When Previously Unrelated Industries Begin to Serve

question 14

True/False

Industry convergence happens when previously unrelated industries begin to serve the same customer.

---

Definitions:

Nonsystematic Variance

Refers to the variability in a security or portfolio returns that is not due to market-wide influences but rather specific to an individual security or firm.

Factor Beta

Sensitivity of security returns to the realization of a systematic factor. Also called factor loading and factor sensitivity.

Economic Growth

The increase in the amount of goods and services produced by an economy over time, often measured by the annual percentage growth of a country's gross domestic product (GDP).

Equally-Weighted Portfolio

An investment portfolio where each asset is allocated the same proportion of the total investment, disregarding market capitalization.