In a Cluster Chain,messages Move Through the Grapevine by One

question 31

True/False

In a cluster chain,messages move through the grapevine by one person telling several close contacts who then pass it on to several people with whom they have close contacts.

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Definitions:

Zero-Beta Security

A financial instrument whose returns are not correlated with those of the market, meaning it has a beta of zero, thus not contributing to portfolio volatility.

Expected Return

The probability-weighted average of the possible outcomes.

Risk Premium

The extra return above the risk-free rate that investors require as compensation for the risk of an investment.

Alpha

In investing, alpha is the measure of an investment's return relative to a benchmark index's performance, representing the value that a portfolio manager adds or subtracts from a fund's return.