An Order to Buy Shares of Stock at a Stated

question 20

Multiple Choice

An order to buy shares of stock at a stated price or less is called a________ order.

• A)limit
• B)stop
• C)market
• D)short
• E)bid

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Definitions:

Capital Asset Pricing Model

A framework that explains the link between the inherent risk and anticipated return on assets, especially equities.

Efficient Frontier

A portfolio optimization concept that outlines the set of optimal portfolios offering the highest expected return for a defined level of risk or the lowest risk for a given level of expected return.

Correlation

A statistical measure that describes the extent to which two variables move in relation to each other, ranging from -1 (perfect negative correlation) to +1 (perfect positive correlation).

Portfolio Weight

The proportion of the total value of an investment portfolio that is attributed to each individual investment.