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Part B - Knowledge & Understanding /5 Marks K/U 3. Matching: Match the description/definition to the best term/concept in the word bank. (5 marks) A. value stock F. institutional investors K. market price B. dividends G. common stock L. market value C. beta H. risk premium M. standard deviation of returns D. capital loss I. N. capital gain preferred stock unsystematic risk E. range of returns J. O. systematic risk Response Description / Definition (Letter) 1. A certificate issued by a firm to raise funds that represents partial ownership in the firm. 2. Selling a capital asset for a lower price than what was paid for it. Professionals responsible for managing large pools of money, such as pension funds, on behalf of their clients. 3. 4. Risks that is specific to a company, an industry, or a country. 5. Income that represents the profit due to part owners of the company. 6. Number of shares of stock outstanding multiplied by the price of the stock. A measure of the systematic risk or volatility of an investment relative to a benchmark index (or market as a whole). 7. A certificate issued by a firm to raise funds that entitles shareholders to first priority to receive dividends. 8. Stocks of firms that are currently undervalued by the market for reasons other than the 9. performance of the businesses themselves. 10. Dividing the market value of a firm by the number of shares outstanding

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