George Clancy Wants to Diversify His Portfolio by Adding a Stock

question 2

Multiple Choice

George Clancy wants to diversify his portfolio by adding a stock that has a value which moves in direct relation to the business cycle.What type of stock is George thinking about adding to his portfolio?

• A)defensive stock
• B)cyclical stock
• C)small-cap stock
• D)blue-chip stock
• E)growth stock

Understand the role of socio-economic status (SES) in a child's learning opportunities and achievement.

Explain the importance of peer acceptance and friendships in a child's social development.

Understand the impact of free radicals on aging and diseases.

Differentiate between genetic-programming and variable-rate theories of aging.

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Definitions:

Active Portfolio

A portfolio that undergoes frequent trading and adjustments by a manager in an attempt to outperform the market or a specific benchmark.

Treynor-Black Model

A portfolio optimization model that blends a passive and an active portfolio for potential risk-adjusted returns superior to the market.

Alpha Coefficient

A measure of the performance on a risk-adjusted basis, calculating how much a portfolio or investment has returned in comparison to the overall market or a benchmark index.

Beta Coefficient

An indicator of how much a stock's price fluctuates in comparison to the general market, representing its risk relative to the market norm.