Baran

The correct answer is B

In large diversified portfolios, specific risk is minimized or eliminated through diversification.

Baran

AIM 2: List and describe the three methods of mapping portfolios of fixed income securities.

1、The process of identifying variables that influence the value of an asset is called:

A) variable decomposition.
 
B) value quantification.
 
C) influence loading.
 
D) risk factor mapping.

Baran

The correct answer is D

The process of identifying variables, or risk factors, that influence the value of an asset is known as risk factor mapping.