Security Analysis & Portfolio Management

2. The ability to buy or sell an asset quickly at a known price.
5. The --------------------frontier 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.
7. The ---------------------- component represents the portion of the portfolio’s actual return beyond that available to an unmanaged portfolio with identical systematic risk and is used to assess the manager’s investment prowess.
8. --------------------ratio measures the average return in excess of that of a benchmark portfolio divided by the standard deviation of this excess return.
12. The market ------------------is used as a benchmark to evaluate the performance of funds.
13. ------------------------was one of the originators of Capital Asset Pricing model.
14. The stop------------------order is a conditional market order to buy the stock if it increases to a specified price.
15. ------------------------laid the foundations to the Portfolio theory.
17. The ----------------------theorem suggests that investment and financing are two different decisions.

1. The APT differs from the CAPM because the APT recognizes multiple ---------------------risk factors.
3. Performance ------------------analysis attempts to distinguish the source of the portfolio’s overall performance.
4. A -------------form EMH is when prices reflect all historical information.
6. ------------------of returns is the measure of the degree to which rates of return move together relative to the individual mean values over time.
7. A ---------------sale is a transaction in which the seller sells overpriced stock which he/she does not own but borrows from another investor through a broker.
9. The --------------market is used for lending and borrowing short-term funds.
10. The --------------measure is calculated as excess returns per unit of systematic risk.
11. The --------------------market line is the graphical representation of CAPM.
13. -------------------measure calculates the portfolio’s average return in excess of a user-selected minimum acceptable return threshold per unit of downside risk.
16. --------------------measure represents the average excess return of the portfolio above that predicted by an asset pricing model.
18. The market ------------------in its’ pure form means shifting funds between a market index portfolio and safe assets such as T-bills or money market funds depending on whether the market as a whole is expected to outperform the safe asset.