Portfolio Management

The return an investor can earn on a risk-free investment such as U.S treasury bill

The true rate of interest is the nominal rate of interest minus the rate of inflation.

Amount that investors believe the stock should be trading from, or what they think is worth

Uses several basic statistical measures to develop a portfolio plan

Stocks that were originally sold by the company and have been repurchase by the company

The amount of annual earnings available to common stockholders, sated on a per-share basis.

Common stock issued in different classes, each of which entitles holders to different benefits

The actual rate of return on investment, adjusted for inflation.

Where shareholders have their cash dividends automatically reinvested into the company's stock.

Emphasizes balance the portfolio by assembling a wide variety of stocks and/or bonds

Stocks of medium-sized companies with market capitalizations between 2$ billion and $10 billion

Investment's cost to the present value of the benefits that it provides for the investor.

Existing stockholders are given the first opportunity to purchase new shares of the company's

Well-established firms with long track records of earning profits and paying dividends.

One that provides the higher return for a given risk level

Arbitrary amount assigned to a stock when it is first issued

A measure of undiversifiable risk

Stockholders' equity in the firm as reported in the balance sheet

Securities that are tied to the inflation rate.

The rate of return that includes interest on earned interest