A friend asks you about the following terms. Answer your friend by giving a
definition or/and example or/and explaining each of the following terms
• Risk Averse Investor – One who dislikes risk
• Systematic Risk – market related or non- diversifiable risk
• Dividend Yield – dividend per share divided by share price
• Weak Form Efficient Market – the information contained in the past
series of prices of a security is reflected in the security’s current
market price
• Primary Market – a market for new issues of securities where the
cash proceeds go to the issuer of the securities
• Secondary Market – the market where previously issued securities
are traded
• Equity Instrument – Funds provided by or an interest of owners of an
entity
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• Debt Instrument – a financial contract in which the receiver of the
initial cash promises a particular cash flow, usually calculated using
an interest rate, to the provided of funds.