SAPM CROSSWORD

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Across
  1. 5. In order to diversify, we look for security returns that are related ------------------
  2. 7. Variance of a portfolio with equi-proportionate investments in each security is approximately equal to the average ------------------as the number of securities becomes very large
  3. 9. The tendency of winning stocks to continue performing well in the near term which is also one of the factors in the 4 factor Fama-French model or the Carhart 4 factor model of asset pricing
  4. 12. In the absence of secondary markets, this risk would be higher
  5. 13. Researchers came up with the Single index model to reduce the ----------------errors in the Mean-variance model
  6. 14. The line representing CAPM is the -----------------market line
  7. 16. On any type of order, instead of paying 100% cash, investors can borrow a portion of the transaction and use the stock as collateral, which is called --------------------transactions
  8. 17. An opportunity where an investor earns riskless profit without making any net investment
  9. 18. A conditional market order to sell stock if it drops to a given price (write without space)
  10. 20. A short ---------- occurs when a stock moves sharply higher, prompting traders who bet its price would fall to buy it in order to avoid greater losses
Down
  1. 1. The efficient line where riskless lending and borrowing are allowed and the tangent portfolio on the efficient frontier of risky assets is the market index is called the ----------------market line
  2. 2. The other name for non-diversifiable risk is -------------------------risk
  3. 3. The other name for indifference curve is --------------curve
  4. 4. The economist who laid the foundations for the Modern Portfolio theory
  5. 6. The frontier which represents the set of portfolios with the maximum rate of return for every given level of risk, or the minimum risk for every level of return
  6. 8. --------------------is the slope of the security characteristic line
  7. 10. The ------------risk of the firm is diversifiable
  8. 11. CAPM is a market --------------model
  9. 15. The economist who developed the Arbitrage Pricing Theory (APT) model
  10. 19. One of the researchers/economists who developed the CAPM model