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Which Factor Is NOT a Pragmatic Cue

question 123

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Which factor is NOT a pragmatic cue?


Definitions:

Portfolio Diversification

Portfolio diversification is an investment strategy that aims to reduce risk by allocating investments among various financial instruments, industries, and other categories.

Security Market Line

A line that represents the relationship between the expected return of a security and its systematic risk, illustrating the risk-return trade-off in the capital asset pricing model (CAPM).

Portfolio Weight

The proportion of a specific asset within an investment portfolio relative to the total asset value of the portfolio.

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