Ch 12: Assignment - Investing in Stocks and Bonds Asset allocationA. This is the rate of return on short-term Treasury bills which is considered to be free from any type of default risk. DiversificationB. This refers to stocks of companies with lower market value which is calculated by multiplying the number of company's shares outstanding by its stack price. RebalancingC. This refers to stocks of companies with large market values which is calculated by multiplying the number of company's shares outstanding by its stock price Risk-free rate D. This refers to the process of reallocating your investment into assets so that you can maintain the risk exposure you prefer. Proxy E. This document assigns the voting rights of a shareholder to another party Dividend yieldF. This ratio shows how much a company paid out in dividends each year relative to the price of the share. Stock dividendsG. This is a strategy designed to reduce the risk by using a mix of securities for your investment portfolio. This term is used for distributions that an investor receives by getting additional stock of the company as a supplement or instead of cash dividends on the existing stock. Dividend reinvestment plan (DRP) Large-cap stocksI. This is the term used to describe the distribution of assets based on H. the investor's tolerance for risk. Small-cap stocks. This is a plan offered by companies that allows stockholders to reinvest their cash dividends into additional shares of the company's stock