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Match the terms associated with stocks on the left with the descriptions of the terms on the right. Read each description carefully and type the

Match the terms associated with stocks on the left with the descriptions of the terms on the right. Read each description carefully and type the letter of the description in the Answer column next to the correct term.

These are not necessarily complete definitions, but there is only one correct description for each term.

Asset allocation A. This is the term used to describe the distribution of assets based on the investors tolerance for risk.
Diversification B. This term describes the new shares of stock that is distributed to existing stockholders as a supplement or in place of cash dividends.
Rebalancing C. 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 D. This is a risk management technique that distributes money among different assets so that the gains in one asset can offset any losses in another asset class.
Proxy E. This refers to stocks of companies with large market values which is calculated by multiplying the number of companys shares outstanding by its stock price.
Dividend yield F. This is a program offered to stockholders where they can choose to receive dividends in the form of additional shares of the companys stock.
Stock dividends G. This refers to the process of reallocating your investment into assets so that you can maintain the risk exposure you prefer.
Dividend reinvestment plan (DRP) H. This ratio shows how much a company paid out in dividends each year relative to the price of the share.
Large-cap stocks I. This refers to stocks of companies with lower market value which is calculated by multiplying the number of companys shares outstanding by its stock price.
Small-cap stocks J. This document assigns the voting rights of a shareholder to another party.

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