Get Started with Vocabulary

Match each of the following terms below with its definition

- A. B. C. D. E. F. G. H. I.	This refers to movement in prices or return and inestors are most concerned about the chance that an unfavorable event might occur.
- A. B. C. D. E. F. G. H. I.	This is the price or return fluctuations in a single asset. This is relevant when an investor holds only one stock, for example.
- A. B. C. D. E. F. G. H. I.	Measured using the standard deviation, which captures the variability in returns or prices
- A. B. C. D. E. F. G. H. I.	A list of possible outcomes and the statistical likelihood of each outcome
- A. B. C. D. E. F. G. H. I.	The rate of return that is expeced from an investment based on the likelihood of different outcomes
- A. B. C. D. E. F. G. H. I.	Actual Gain or Loss over a period of time expressed as a percentage
- A. B. C. D. E. F. G. H. I.	This measures captures the risk per unit of return (calculation of this measure will not be on the quiz)
- A. B. C. D. E. F. G. H. I.	Refers to the concepts that investors are can be induced to invest only if the expected return is worth the risk Empirical Research suggests this concept to be accurate across investors on average
- A. B. C. D. E. F. G. H. I.	Imagine a risk-free asset. Investments that involve additional risk include additional expected return. This is the name for the "extra" return that is due to taking "extra" risk (Section 8-2E)

A.	Realized Rate of Return
B.	Histogram
C.	Risk Aversion (Section 8-2E)
D.	Risk Premium
E.	Risk (See Section 8-2)
F.	Coefficient of Variation = standard deviation divided by expected return
G.	Probability Distribution (See Section 8-2A)
H.	Expected Return (Section 8-2A)
I.	Stand-Alone Risk (See Section 8-2)