Vocab chapter unit 3 Fin Crossword
                                                       
                                                       
                                                       
                                                       
                                                       
                                                       
                                                       
                                                       
                                                       
                                                       
                                                       
                                                       
                                                       
                                                       
                                                       
                                                       
                                                       
                                                       
                                                       
                                                       
                                                       
                                                       
                                                       
                                                       
                                                       
                                                       
                                                       
                                                       
 
 
Down: 1) The notion that capital markets, such as the Toronto Stock Exchange are fairly priced.2) is one in which security prices reflect available information.3) The proportions of the market value of the firm’s assets financed via debt, common stock and preferred stock.4) The cost of acquiring new funds expressed as a percentage, usually slightly higher than the current WACC rate. It is Minimum rate of return the firm must earn to ensure the value of the firm does not drop. It is the cost of the new funds needed to finance a project, not the cost of past funds6) is a risk that affects at most, a small number of assets.7) The MARKET interest rate that equates a bond’s present value of interest payments and principal repayments with its price. This MARKET rate of return is what is required by investors for owing the bond8) Risk that affects a large number of assets, each to a greater or lesser degree.9) The annual coupon divided by the face value of a bond.10) This idea is the opposite of putting all your ‘eggs in one basket’, and is carried out by spreading your investment across many diverse assets to eliminate some of the risk.12) The amount of systemic risk present in a particular risky asset, relative to the systemic risk present in an average risky asset, is called the particular asset’s BETA COEFFICENT.14) A relative measure of a stocks volatility. 1 = ave. volatility. Greater than 1, more volatility, and therefore more risk. Less than one, less volatility and therefore less risk. Used as a variable in the CAPM Across: 4) Used in CAPM. Is the difference between RM and RF. This is the risk that the market might collapse, thereby costing the investor his/her investment. It is incurred whenever an investor tries for a larger return that is provided by the risk free rate ( which is equated with Canadian Treasury -BILL, or T-BILLS5) The number of years until the face value is paid is called the bond’s time to maturity.11) Investors tend to own more than a single stock, bond, or other asset. A PORTFOLIO is a group of assets such as stocks and bonds held by an investor.13) A short alphabetic abbreviation for an exchange-listed stock by which the issue is identified in the market.15) The weighted average of the firm’s cost of equity, preferred stock, and after tax debt.16) Also a measure of risk. Measures how tightly the expected returns are to the expected mean average17) Is the principal amount of a bond that is repaid at the end of the term.18) is a representative SAMPLE of stocks for a particular stock exchange. Indexes all begin with an arbitrary value of 1000. So, when that index hits 2000, everyone knows the value of that index has doubled. The arbitrary start value of 1000 allows one to determine whether the index has increased or decreased in value over time.
 

 

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