SAPM CROSSWORD

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Across
  1. 2. The economist who developed the Arbitrage Pricing Theory (APT) model
  2. 5. The other name for non-diversifiable risk is -------------------------risk
  3. 7. The economist who laid the foundations for the Modern Portfolio theory
  4. 8. An opportunity where an investor earns riskless profit without making any net investment
  5. 13. Researchers came up with the Single index model to reduce the ----------------errors in the Mean-variance model
  6. 14. In the absence of secondary markets, this risk would be higher
  7. 16. One of the researchers/economists who developed the CAPM model
  8. 17. 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
Down
  1. 1. 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
  2. 3. The other name for indifference curve is --------------curve
  3. 4. --------------------is the slope of the security characteristic line
  4. 5. 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
  5. 6. 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
  6. 7. 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
  7. 9. CAPM is a market --------------model
  8. 10. The line representing CAPM is the -----------------market line
  9. 11. A conditional market order to sell stock if it drops to a given price (write without space)
  10. 12. 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
  11. 15. In order to diversify, we look for security returns that are related ------------------Unique The ------------risk of the firm is diversifiable