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Unformatted text preview: asset. Beta: Market risk premium: Risk Aversion: An investor prefers less risk to more risk. To a risk averse investor, the pain of losing a dollar is greater than the pleasure of winning a dollar. Simple average: Compound average: Time value of money: Time and the value of money are inversely related. Present value: Future value: Compounding: Discounting: Modern portfolio theory: Asset allocation: Efficient frontier: Systematic risk: Unsystematic risk: Diversification:...
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- Fall '08
- Capital Asset Pricing Model, higher percentage return, Paul Ramirez