Choose the Word or Phrase in [ ] Which Will

question 138

Short Answer

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-[Comprehensive | Named peril] policy covers all perils unless they are specifically excluded.

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Definitions:

Portfolio Returns

The overall gains or losses generated by a portfolio of investments over a specific period, assessing the effectiveness of investment choices.

Systematic Risk

Refers to the risk inherent to the entire market or market segment, which cannot be mitigated through diversification.

Diversification

The process of allocating investments across various financial assets to reduce the risk exposure of a portfolio.

One-Factor APT

The Arbitrage Pricing Theory that describes the expected return of a financial asset in relation to a single systematic risk factor.