The Index Model Was First Suggested by

question 18

Multiple Choice

The index model was first suggested by

• A) Graham.
• B) Markowitz.
• C) Miller.
• D) Sharpe.

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Definitions:

Yield Rate

The annual return on an investment, expressed as a percentage of the investment's cost.

Compounded Semi-annually

This refers to the process of calculating interest on an investment or loan, with the interest being added to the principal balance twice a year, typically every six months.

Strip Bond

A bond where both the principal and regular interest payments have been separated and are sold individually.

Yield Rate

The rate of return on an investment over a specified period, expressed as a percentage, considering both interest and dividends.