Chapter 11 Cue Cards

Measuring % Rate of Return

Formula for Capital Gain Yield

Formula for Dividend Yield

What is a Market Index

Rate of return on a security calculation

Volatility of returns is what is considered as safety
T/F

Stocks have highest average rate of return and highest level of volatility
T/F

What is Unique Risk?

Define Market Risk

How does Diversification reduce risk?

What does reduction in risk of portfolio depend on?

Define Covariance

What is portfolio risk