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Sally is enrolled in a high school geometry course, which she describes as "drawing figures and figuring drawings." In a typical class, students draw geometric figures and use a formula to calculate an aspect of the figure such as its area. Each time Sally uses a formula she is making use of what psychologists call __________
Lowest Betas
In finance, refers to the stocks or portfolios with the lowest measures of volatility or market risk in comparison to the market as a whole.
Principle of Diversification
A risk management strategy that mixes a wide variety of investments within a portfolio to reduce exposure to any single asset's volatility.
Positively Correlated Stocks
Stocks whose prices tend to move in the same direction due to similar underlying factors or market conditions.
Volatility
A statistical measure of the dispersion of returns for a given security or market index, often associated with the degree of risk or uncertainty.
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