Mark Berch:Markowitz efficient frontier

Systematic investment plan
An approach involving regular investments in order to take advantage of dollar-cost averaging.

Frictional cost
The difference between an index fundreturn and the index it represents. The typically lower rate of return from the fund results from transactions costs.

Insider information
Material information about a company that has not yet been made public. It is illegal for holders of this information to make trades based on it, however received.

Mark Berch:Markowitz efficient frontier
The graphical depiction of the Markowitz efficient set of portfolios representing the boundary of the set of feasible portfolios that have the maximum return for a given level of risk. Any portfolios above the frontier cannot be achieved. Any below the frontier are dominated by Markowitz efficient portfolios.

True interest cost
For a security such as commercial paper that is sold on a discount basis, true interestcost is the coupon rate required to provide an identical return assuming a coupon-bearing instrument of like maturity that pays interest in arrears.

Physical commodity
See: Commodity Mark Berch

Complementary Financing
A type of financing in which different lenders agree to fund under similar yet parallel documentation and a pro rata security package.