Investments Terms

Question 1

Asset Allocation

Answer 1

the distribution of assets across different assets classes to create a portfolio with the desired risk and return characteristics

Question 2

Asset Class

Answer 2

A group of securities that exhibit similar characteristics and behave similarly in different market conditions. Cash, Bonds, stocks

Question 3

Capital Gains Yield

Answer 3

The change in price during a period divided by the beginning price

Question 4

Collective Trust

Answer 4

A tax exempt, pooled investment vehicle that consist solely of retirement assets. Pensions, profit sharing , stock bonuses , and other trust exempt from federal income tax

Question 5

Mutual Funds

Answer 5

An Investment Vehicle that pools money from many Investors

Question 6

Rate of Return (aka total return %)

Answer 6

the return on an investment measured as a % of the originally invested sum that accounts for all cash flows and capital gains or losses, allows for comparison among different types of investments

Question 7

Separate Accounts

Answer 7

investment accounts established by an INSURANCE company under state law. Assets of each separate account are separate from all other insurance company assets

Question 8

Total Market Capitalization ( Market Cap)

Answer 8

Stock Price multiplied by the number of outstanding shares of a stock or the total value of the company’s stock