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Table 4.1
The HR director is reviewing personality files. She is reviewing the five dimensions of personality. She notes that Jane is described as imaginative, curious, and urbane. Peter is profiled as quiet, cautious, and reserved. Tim's file describes him as down-to-earth, simple, and narrow. The HR director reviews her own profile and sees that she is described as sad and out of control.
-Refer to Table 4.1. The HR director's review of Peter is focusing on the personality dimension of:
Factor Portfolio
A portfolio constructed to have a high sensitivity to a specific factor or factors, used to capture returns associated with those factors.
Well-Diversified
A portfolio strategy involving the mix of different investments to reduce exposure to risk.
Beta
A scale for determining the level of fluctuation or consistent risk in a security or portfolio compared with the overall market.
Risk Premium
The additional return an investor expects to receive for taking on additional risk compared to a risk-free asset.
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