Security analysis concerns the construction and maintenance of a collection of investments.

The income objectives differ from stability of principal in that; there is no specific prescription against declines in principal values.

Arbitrage Price Theory was proposed by Stephen S. Rose and presented in his article ‘The arbitrage theory of Capital Asset Pricing’, published in Journal of Economic Theory in1976.

Market efficiency means that the price which investor is paying for financial asset (stock, bond, other security) partially reflects fair or true information about the intrinsic value of this specific asset or fairly describes the value of the company, the issuer of this security.

Capital market is efficient, if the prices of securities which are traded in the market react to the changes of situation immediately, fully and credibly reflect all the important information about the security’s future income and risk-related with generating this income.

Funds with growth of income as the primary objective often seek to have the annual income increase by at least the rate of inflation.

The expected return of a portfolio is the anticipated amount of returns that a portfolio may generate, making it the mean (average) of the portfolio's possible return distribution

Markowitz approach is viewed as a single period approach.

Inefficient set of portfolios involves the portfolios that the investor will find optimal ones.