 |  Fundamentals of Corporate Finance, 4/e Stephen A. Ross,
Massachusetts Institute of Technology
Randolph W. Westerfield,
University of Southern California
Bradford D. Jordan,
University of Kentucky
Gordon S. Roberts,
York University
Some Lessons from Capital Market History
Key TermsBelow are the key terms featured in this chapter. Clicking on a term will reveal its definition. The textbook's full glossary is also available for online searching.
| Efficient Capital Market | Market in which security prices reflect available information.
(See Refer to page 395)
| | | | | Efficient Markets Hypothesis (EMH) | The hypothesis is that actual capital markets, such as the TSE, are efficient.
(See Refer to page 397)
| | | | | Normal Distribution | A symmetric, bell-shaped frequency distribution that can be defined by its mean and standard deviation.
(See Refer to page 392)
| | | | | Risk Premium | The excess return required from an investment in a risky asset over a risk-free investment.
(See Refer to page 388)
| | | | | Standard Deviation | The positive square root of the variance.
(See Refer to page 390)
| | | | | Variance | The average squared deviation between the actual return and the average return.
(See Refer to page 389)
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2002 McGraw-Hill Higher Education