Chapter One
The ___________ refers to the potential conflict between management and shareholders.
agency problem
The material wealth of a society is a function of...
all real assets
The means by which individuals hold their claims on real assets in a well-developed economy are...
financial assets
Asset allocation refers to...
the allocation of assets into broad asset classes
__________ are financial assets.
Bonds and stocks
Which of the following portfolio construction methods starts with security analysis? A. Top-down B. Bottom-up C. Middle-out D. Buy and hold E. Asset allocation
Bottom-up
Security selections refers to...
Choosing which securities to hold based on their valuation.
________ are real assets.
Land, machines, and knowledge
The value of a derivative security...
depends on the value of another related security
Financial assets...
indirectly contribute to the country's productive capacity
