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Investments test 1
Chapter 6
4
Business
Undergraduate 4
10/15/2013
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Term
Speculation
 Definition
Considerable risk
(Sufficient to affect the decision)
Commensurate gain
Term
Risk averse investors
 Definition
reject investment portfolios that are fair games or worse
Term
Asset allocation choice
 Definition
Fraction of the portfolio invested in Treasury bills or other safe money market securities
Term
Passive strategy
 Definition
involves a decision that avoids any direct or indirect security analysis
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