Examlex
What is a rem?
Full Diversification
The process of spreading investments across various assets to reduce exposure to risk from any single asset.
Nonsystematic Risk
The risk associated with an individual investment or a small group of investments, which can be mitigated through diversification.
Treynor-Black Model
An optimization tool used by portfolio managers to balance the trade-off between risk and return by combining actively selected securities with a passively managed market portfolio.
Nonsystematic Risk
The risk associated with a specific issuer of a security, industry, or sector, which can be mitigated through diversification.
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