Term
| If two stocks are perfectly correlated, is there a benefit from diversification? |
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Definition
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Term
| Does the GIPS require managers to include non-fee-paying accounts in composites? |
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Definition
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Term
| In the SML, when is a security underpriced? |
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Definition
| if the required return is less than the holding period (or expected) return, is overpriced if the required return is greater the holding period (or expected) return, and is correctly priced if the required return equals the holding period (or expected) return. |
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Term
| Are EFTs subject to market risk? |
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Definition
| Yes, just like all diversified portfolios |
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