certain active return of 1.5%. Used as a way to incorporate individual investor risk tolerances into financial decisions. Certificate A formal document used to record a fact and used as proof of the fact, such as stock certificates, that evidence ownership of stock in a corporation. Certificate of Accrual on Treasury Securities (CATS) Refers to a zero-coupon US Treasuryissue that is sold at a deep discount from the face value and pays no couponinterest during its lifetime, but returns the full face value at maturity. Certificate of deposit (CD) Also called a time deposit this is a certificateissued by a bank or thrift that indicates a specified sum of money has been deposited. A CD has a maturity date and a specified interest rate, and can be issued in any denomination. The duration can be up to five years. Certificate of Origin A document certifying the country of origin for goods sold internationally. Certificates of Amortized Revolving Debt (CARD) Pass-through securities backed by credit card receivables. Certificates of Automobile Receivables (CAR) Pass-through securities backed by automobile loan receivables. Certificateless municipals Municipal bonds with one certificate which is valid for the entire issue, and having no individual certificates, easing transactions. See: Book-entry securities. Certified check A bank guaranteedcheck for which funds are immediately withdrawn, and for which the bank is legally liable. Certified Financial Planner (CFP) A person who has passed examinations accredited by the Certified Financial Planner Board of Standards, showing that the person is able to manage a client's banking, estate, insurance, investment, and tax affairs. Certified financial statements Financial statements that include an accountant's opinion. Certified Public Accountant (CPA) An accountant who has met certain standards, including experience, age, and licensing, and passed exams in a particular state. Chair of the board Highest-ranking member of a Board of Directors, who presides over its meetings and who is often the most powerful officer of a corporation. Chaos A deterministic non-linear dynamic system that can produce random looking results. A chaotic system must have a fractal dimension, and exhibit sensitive dependence on initial conditions. See: Fractal Dimension, Lyapunov Exponent, Strange Attractor. Chapter 7 Proceedings Provisions of the Bankruptcy Reform Act under which the debtorfirm'sassets are liquidated by a court because reorganization would fail to establish a profitable business. Chapter 11 Proceedings Provisions of the Bankruptcy Reform Act under which the debtorfirm is reorganized by a court because the estimated value of the reorganized firm exceeds the expected proceeds from its liquidation. Changes in financial position Sources and uses of funds provided from operations that alter a company'scash flowposition: depreciation, deferred taxes, other sources, and capital expenditures. Characteristic line The market model applied to a single security; a regression of security returns on the benchmark return. The slope of the regression line is a security's beta. Characteristic portfolio A portfolio which efficiently represents a particular asset characteristic. For a given characteristic, it is the minimum risk portfolio, with portfolio characteristic equal to 1. For example, the characteristic portfolio of assetbetas is the benchmark. It is the minimum risk beta = 1 portfolio. Charge