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A scatterplot a. shows how and are related when their relationship is scattered all over the place.
b. relates the covariance of and to the correlation coefficient.
c. is a plot of observations on and , where each observation is represented by the point .
d. shows observations of over time.
Par
Par value is the nominal or face value of a bond, share of stock, or coupon as stated by the issuer, which may not always reflect the market value.
Cost of Debt
is the effective rate that a company pays on its total debt, an important component in calculating the cost of capital.
Security Market Line
A graphical representation of the risk-return trade-off for individual securities, illustrating the capital asset pricing model (CAPM).
Risk-free Rate
The yield from an investment that carries no risk of losing money.
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