Examlex
Which one of the following terms is used to describe a loan wherein each payment is equal in amount and includes both interest and principal?
Volatility
Measures the degree of variation of a trading price series over time, indicating the level of uncertainty or risk associated with the size of changes in a security's value.
Unsystematic Risk
The risk associated with a specific issuer of a security or investment, which can be mitigated through diversification.
Diversification
A risk management strategy that mixes a wide variety of investments within a portfolio to minimize the impact of any single investment's performance.
Portfolio Theory
A framework for constructing a portfolio of assets in such a way that it optimizes the balance between risk and return.
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