A Compression Is a Squash and a Rarefaction Is a

question 45

Multiple Choice

A compression is a squash and a rarefaction is a

• A)crunch.
• B)reverse tension.
• C)stretch.

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Definitions:

Beta

A way of measuring the level of erratic behavior, or systemic threat, in a security or investment group in perspective of the general market.

Expected Return

The average of all possible returns for an investment, weighted by their respective probabilities.

Portfolio Standard Deviation

A measure of the dispersion of returns from a portfolio, indicating the portfolio's risk.

Cyclical Stock

Shares of companies whose earnings and stock price are heavily influenced by the ups and downs of the economy at large.