a weighted average of the returns on the individual assets from which it is formed.

a statistical measure of the relationship between any two series of number.

combining different investment in one portfolio

measures the directional relationship between the returns on assets.

a model that describes the relationship between expected return and risks

measure of volability (pag flactuate) no returns

represents the firm’s cost of financing and is the minimum rate of return that a project must earn.

are funds actually received ty the firm from the save of a security

the total costs of issuing and selling a security

have a higher claim to dividends or asset distribution

is the return required on the stock by investor, in the marketplace.

assumes that the value of a share of stock equals the present value of all future dividends assumed to grow at a constant rate

reflects the expected average future cost of capital over the Long - run

uses the firm's desired capital structure

existing weights uses actual or current structure

uses market values to measure the proportion of each capital

uses accounting values from firms finance statement of each type of capital

return on the market portfolio of all traded securities

easily estimated by using the betas of individual asset

process of identification, analysis, and acceptance or mitigation of risk in investment

identifying risks, analysing them and making investment decisions based on either accepting, or mitigating them

to the firm is the same as the cost of an equivalent fully subscribed issue of additional common stockto the firm is the same as the cost of an equivalent fully subscribed issue of additional common stock

are issued underpriced, meaning it is sold at a discount relative to its current market price

compensation earned by investment bankers for selling the security (commission) coits associated with underwriting

issuer expenses such as legal, accounting, and printing.