How Many Items Should You Divide Your Subject Into

question 12

Multiple Choice

How many items should you divide your subject into?

• A) one or two
• B) two to five
• C) seven to ten
• D) It doesn't matter how many items you divide your subject into.

---

Definitions:

Alpha

A measure of the active return on an investment, indicating how much a portfolio has outperformed or underperformed its benchmark index.

CAPM

The Capital Asset Pricing Model, a theory that describes the relationship between the risk of a security and its expected return.

Expected Return

The anticipated value or profit that an investment is predicted to generate.

Benchmark Rate

The standard interest rate against which other borrowing or lending rates are measured, often set by central banks.