Description Term Answer Asset allocation This is the term used to describe the distribution of assets based on . the investor's tolerance for risk. Diversification This term describes the new shares of stock that is distributed to . existing stockholders as a supplement or in place of cash dividends. Rebalancing This is the rate of return on short-term Treasury bills which is . considered to be free from any type of default risk. Risk-free rate This is the strategy of distributing your money among different assets D. so that the gains in one asset can offset any losses in another asset class. This refers to stocks of big companies like Apple, GE etc. that have Proxy . large market capitalization. Dividend yield This is an option given to stockholders where they can choose to F. reinvest their dividend earnings into buying additional shares of the company's stock. Stock dividends G. This refers to the process of realigning the weights of different types of securities in your portfolio to maintain your exposure to risk. Dividend This term is calculated by dividing annual dividends received per share . reinvestment with the market price of the share. plan (DRP) . Dividend This term is calculated by dividing annual dividends received per share reinvestment with the market price of the share. plan (DRP) Large-cap sto cks This refers to stocks of companies with lower market value which is I calculated by multiplying the number of company's shares outstanding by its stock price. Small-cap stocks This is an authorized document that allows another person to vote J. instead of the owner of the stock