1. The most valuable alternative that is given up by going forward with a new project. Not a cash cost but nevertheless a real cost Risk premium 2. A situation where the market prices of stocks reflect all past prices 7 Weak form efficient markets V 3. The price an investment is sold at divided by the cost of the investment V Semi-strong form efficient markets 4. The price an investment is sold at divided by the cost of the investment Capital gains yield 5. Strong form efficient markets The dollar return on an investment divided by the cost of the investment in dollars. 6. Variance/standard deviation A situation where all information is reflected in the market values of stocks h 7 Percentage returns A situation where all publicly available information is reflected in the market values of stocks Opportunity cost 8. Statistical measures of the variability of returns 10 Geometric average return 9. Statistical measures of the variability of returns Normal distribution 10. The average compound return camed per year over a multi-year period