Examlex
The authors list a number of principles regarding how to structure organizations. These include:
Efficient Frontier
A concept in modern portfolio theory representing a set of optimal investment portfolios that offer the highest expected return for a defined level of risk or the lowest risk for a given level of expected return.
Capital Asset Pricing Model
A model that describes the relationship between systemic risk and expected return for assets, particularly stocks, used to calculate a theoretically appropriate required rate of return for an asset, given its non-diversifiable risk.
Expected Rate
The anticipated return on an investment based on historical averages, interest rates, or economic indicators.
Illiquidity Premiums
Additional return expected by investors for holding assets that are difficult to trade quickly without significant price concessions.
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