Define the Following Terms Briefly and Concisely

question 12

Essay

Define the following terms briefly and concisely.
a.stock
b.bond
c.portfolio diversification
d.speculation
e.random walk

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Definitions:

Dividend Payout Ratio

The proportion of net income a firm pays out to its shareholders in the form of dividends.

ROA

Return on Assets, a financial ratio indicating the profitability of a company relative to its total assets.

ROE

Return on Equity, a financial ratio that measures the profitability of a business in relation to shareholder's equity.