asset ownership by signing the back of the asset'scertificate. Endowment Gift of money or property to a specified institution for a specified purpose. Endowment funds Investment funds established for the support of institutions such as colleges, private schools, museums, hospitals, and foundations. The investment income may be used for the operation of the institution and for capital expenditures. Energy mutual fund Mutual fund investing in energy stocks only, e.g., oil and gas companies. Engineering risk The risk associated with the impact on a project's cash flows from deficiencies in design or engineering. Also known as design risk. Enhanced indexing Also called indexing-plus, an indexingstrategy whose objective is to exceed or replicate the total return performance of some predetermined index. Enhancement An innovation that has a positive impact on one or more of a firm's existing products. Enterprise A business firm. Enterprise Value The market capitalization of a firm'sequity plus the market value of the firm's debt. Often the value of assets that are non-core are excluded from the final calculation. Entrepreneur A person starting a new company who takes on the risks associated with starting the enterprise, which may require venture capital to cover start-up costs. Entropy The level of disorder in a system. Environmental fund A mutual fund that invests strictly in stocks of companies that are environmentally friendly and/or have the goal of environmental betterment. The investors are trying to support and profit from opportunities related to the environmental movement. Environmental risk The risk associated with economic or administrative consequences of slow or catastrophic environmental pollution. EPS See: Earnings per share Equal dollar swap Selling common stock/convertibles in one company and reinvesting the proceeds in as many shares of (1) another type of securityissued by the company, or (2) another security of the same type but of another company -- as can be bought with the proceeds of the sale. See: Equal shares swap. Equal percentage contribution rule (EPCoR) Principle that each assetcontributes the same proportion to the equilibriumportfolio rate premium and risk. Equal shares swap Applies mainly to convertible securities. Selling the underlying common and reinvesting the proceeds in as much of the convertible as can be converted into the number of shares of common just sold. See equal dollar swap. Equalizing dividend Special dividends received by investors of a firm for income the investor lost because the firm altered the dividends payment schedule. Equilibrium The stable state of the system. See: Attractor. Equilibrium exchange rate Exchange rate at which demand for a currency is equal to the supply of the currency in the economy. Equilibrium market price of risk The slope of the capital market line (CML). Since the CML represents the expected return offered to compensate for a perceived level of risk, each point on the line is a balanced market condition, or equilibrium. The slope of the line determines the additional expected return needed to compensate for a unit change in risk. The equation of the CML is defined by the capital asset pricing model. Equilibrium price The price at which the supply of goods matches