The 80:20 Rule Is Also Called the Concentration Ratio

question 62

True/False

The 80:20 rule is also called the concentration ratio.

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Definitions:

Portfolio

A diverse collection of financial investments like stocks, bonds, commodities, and real estate held by an individual or an institutional investor.

Expected Return

The anticipated return on an investment, calculated based on the probabilities of various outcomes.

Portfolio

A collection of financial assets such as stocks, bonds, commodities, currencies, and cash equivalents held by an investment company, institution, or individual.

Portfolio

A group of financial instruments comprising equities, debentures, commodities, liquid assets, and near cash items, in addition to closed-end funds and exchange traded funds (ETFs).