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Consider an economy with two types of firms, S and U. The S firms always move together, but U firms move independently of each other. For both types of firms there is a 70% probability that the firm will have a 20% return and a 30% probability that the firm will have a -30% return.
-'Independent risk' is more closely related to:
Data Lake
A central repository that stores all of an organization’s data, regardless of their source or format.
Central Repository
A centralized storage location where data or software is kept and managed for easy access and sharing.
Source
Origin or starting point of something, in computing it often refers to the place where data comes from or the code base of software.
Data Marts
Subsets of data warehouses tailored to meet the specific needs of a particular business line or department, making data more readily accessible.
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