30. Firms that specialize in helping companies raise capital by selling securities to the public are called _________. 31. In securities markets, there should be a risk-return trade-off with higher-risk assets having _________ expected returns than lower-risk assets. 32. When the market is more optimistic about a firm, its share price will ______; as a result, it will need to issue _______ shares to raise funds that are needed. 33. Security selection refers to _________. 34. An example of a derivative security is _________. 35. __________ portfolio construction starts with asset allocation.
30. Firms that specialize in helping companies raise capital by selling securities to the public are called _________. 31. In securities markets, there should be a risk-return trade-off with higher-risk assets having _________ expected returns than lower-risk assets. 32. When the market is more optimistic about a firm, its share price will ______; as a result, it will need to issue _______ shares to raise funds that are needed. 33. Security selection refers to _________. 34. An example of a derivative security is _________. 35. __________ portfolio construction starts with asset allocation.
Chap001.docx