What Does It Mean? Match the terms associated with stocks on the left with the descriptions of the terms on the right. Read each description carefully and type the letter of the description in the Answer column next to the correct term. These are not necessarily complete definitions, but there is only one correct description for each term. Term Answer Description Asset allocationB AThis is an option given to stockholders where they can choose to reinvest their dividend eamings into buying additional shares of the company's stock. This is the term used to describe how to divide your i among different asset classes. Diversification B. nvestments Rebalancing C. This refers to stocks of companies with lower market value which is calculated by multiplying the number of company's shares outstanding by its stock price. Risk-free rate D. This is an authorized document that allows another person to vote instead of the owner of the stock This ratio shows how much a company paid out in dividends each year relative to the price of the share. Proxy E. D Dividend yield F. This is the strategy of distributing your money among different assets so that the gains in one asset can offset any losses in another asset class. Stock dividends G. This term describes the new shares of stock that is distributed to existing stockholders as a supplement or in place of cash dividends. H. Dividend reinvestment plan (DRP) This refers to stocks of companies with large market values which is calculated by multiplying the number of company's shares outstanding by its stock price. Large-cap stocks This is the return an investor can get from a security that can be considered to have zero default risk. Small-cap stocks . This refers to the process of redistributing the proportion of assets in your portfolio as defined in your investment plan