This term describes earning interest on previously earned interest.
Compounding
100
A Coupon Rate of 7% pays how much in interest each year?
$70
100
You can make money in two ways from stock - dividend yield and____.
Capital Gains
100
A group of stocks/investments held by an investor.
Portfolio
200
A series of payments in equal amounts for a specified number of periods.
Annuity
200
As bonds near their maturity date, their prices will get closer to ___?
$1,000
200
Name of your first pet?
Niplah
200
The measure of risk for a stock HELD IN A PORTFOLIO.
Beta
300
The term for an annuity that has payments coming (or going) at the end of each period.
'Ordinary' Annuity
300
If a bond's coupon payment is $100, what is its Coupon Rate?
10%
300
If you purchase a stock at time Period '3', which dividend is the first one you are entitled to?
D4 (D sub 4)
300
The measure of risk associated with a security HELD ALONE.
Standard Deviation
400
The amount to which a cash flow will grow over a given period of time, compounded at a given interest rate.
Future Value
400
If interest rates go up in the market after a bond is issued, what will likely happen to the price of that bond?
It will go down.
400
If the most recent dividend was $1 and g = 5%, what is D2 (D sub 2).
$1.1025
400
The risk that investors can eliminate by having a well diversified portfolio of investments.
Diversifiable
500
A stream of equal payments lasting forever?
Perpetuity
500
You just purchased a bond that is due in 10 years, has a $1,000 par value, an $80 Coupon Payment, and you want to make 10% on this investment. How much did you pay?
$877.11
500
Using the CAPM equation and given the following data, what is the Required Rate of Return for this stock?
r = ?
b = .9
Risk-Free Rate = 6%
Average Stock Return in the Market = 10%
9.6%
500
The theory that links the risk of a security to the risk-free rate plus a risk premium for that particular security.