Nonmarketable investments would include savings accounts at banks and Treasury
bills.
Portfolio diversification often focuses on cross-industry diversification to pick up
correlation coefficients and risk-expected return characteristics that create the portfolio
effect. Suggest a realignment of “industry” classifications to reflect fundamental
relationships sought through the more casual traditional industries.
What is the internal (sustainable) growth rate? How is it calculated?
A stock investor wants to hedge the Dell stock in his portfolio. How can he use a
covered call to do this?
When evaluating the performance of a mutual fund holding several S&P 500 stocks,
one should always use the S&P 500 as the benchmark.