-------------------Is Concerned with the Interrelationships Between Security Returns as Well

question 35

Multiple Choice

-------------------is concerned with the interrelationships between security returns as well as the expected returns and variances of those returns.

• A)random diversification.
• B)correlating diversification
• C)Friedman diversification
• D)Markowitz diversification

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Definitions:

Share Price

The price of a single share of a number of saleable stocks of a company, derivative, or other financial asset.

Plowback Ratio

Plowback Ratio, also known as the retention ratio, is the proportion of earnings that a company retains and reinvests in its operations, rather than distributing as dividends.

Expected ROE

The anticipated return on equity, which measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.

Market-capitalization Rate

The discount rate derived from the market capitalization of a company, used to determine the present value of its future earnings.