Below are $10$ topics from the reading followed by an alphabetical list of terms. Write the

letter of the most relevant term next to each topic.

$\_\_\_\_\_$ Two strands of finance

$\_\_\_\_\_$ Telling the brewer how to make beer

$\_\_\_\_\_$ Big bang of finance

$\_\_\_\_\_$ Develops the idea of the $$market portfolio$$ and all assets valued using a linear function of

a single economy wide risk factor called $$beta$$

$\_\_\_\_\_$ The idea that no simple rule based on published and available information can generate

above normal rates of return

$\_\_\_\_\_$ The arbitrage$-$based argument that the value of a firm is not affected by its choice between

debt and equity financing

$\_\_\_\_\_$ Explains how options and derivative products $$complete$$ the market

$\_\_\_\_\_$ Merton Miller$$s recommended area for further research

$\_\_\_\_\_$ Merton Miller$$s recommended areas to avoid

$\_\_\_\_\_$ Name of a European stock exchange

Possible answers. Used at most once. Some are not used at all.

A Adam Smith and the Wealth of Nations $(1776)$

B Asset pricing and corporate finance

C Asset pricing, agency theory, and behavioral finance

D Crypto$-$currency

E Deutsche Termin Borse $($Euronext$)$

F Electronic and high frequency trading

G Eugene Fama and the Efficient Markets Hypothesis

H Markowitz and the theory of portfolio selection $(1952)$

I Structure of a stock exchange

J Micro$-$normative

K Modigliani$-$Miller Propositions

L Options and volatility

M Robert Merton, Myron Scholes, and Fischer Black

N William Sharpe and the Capital Asset Pricing Model