If You Were to Completely Diversify Your Portfolio by Purchasing

question 70

True/False

If you were to completely diversify your portfolio by purchasing a portion of every asset in the investment universe, then the expected return of your portfolio is equal to the risk-free rate.

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Definitions:

Break Even

The point at which total cost and total revenue are equal, resulting in no net loss or gain.

Process Reengineering

The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance.

Michael Hammer

A pioneer of business process reengineering, known for his work on improving business processes to enhance competitiveness.

Efficiency

The ability to achieve a goal using the least possible amount of resources, such as time, money, and effort.