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MCQs

Total Questions : 141 | Page 1 of 15 pages
Question 1. The beta reflects the stock risk for investors which is usually
  1.    individual
  2.    collective
  3.    weighted
  4.    linear
 Discuss Question
Answer: Option A. -> individual
Answer: (a).individual
Question 2. In regression of capital asset pricing model, an intercept of excess returns is classified as
  1.    Sharpe's reward to variability ratio
  2.    tenor's reward to volatility ratio
  3.    Jensen's alpha
  4.    tenor's variance to volatility ratio
 Discuss Question
Answer: Option C. -> Jensen's alpha
Answer: (c).Jensen's alpha
Question 3. For any or lower degree of risk, the highest or any expected return are the concepts use in
  1.    riskier portfolios
  2.    behavior portfolios
  3.    inefficient portfolios
  4.    efficient portfolios
 Discuss Question
Answer: Option D. -> efficient portfolios
Answer: (d).efficient portfolios
Question 4. An indication in a way that variance of y-variable is explained by x-variable which is shown as
  1.    degree of dispersion is one
  2.    degree of dispersion is two
  3.    degree of dispersion is three
  4.    degree of dispersion is four
 Discuss Question
Answer: Option A. -> degree of dispersion is one
Answer: (a).degree of dispersion is one
Question 5. An unsystematic risk which can be eliminated but the market risk is the
  1.    aggregate risk
  2.    remaining risk
  3.    effective risk
  4.    ineffective risk
 Discuss Question
Answer: Option B. -> remaining risk
Answer: (b).remaining risk
Question 6. In expected future returns, the tighter probability distribution shows risk on given investment which is
  1.    smaller
  2.    greater
  3.    less risky
  4.    highly riskier
 Discuss Question
Answer: Option A. -> smaller
Answer: (a).smaller
Question 7. The risk on a stock portfolio which cannot be eliminated or reduced by placing it in diversified portfolio is classified as
  1.    diversifiable risk
  2.    market risk
  3.    stock risk
  4.    portfolio risk
 Discuss Question
Answer: Option B. -> market risk
Answer: (b).market risk
Question 8. The risk affects any firm with the factors such as war, recessions, inflation and high interest rates is classified as
  1.    diversifiable risk
  2.    market risk
  3.    stock risk
  4.    portfolio risk
 Discuss Question
Answer: Option B. -> market risk
Answer: (b).market risk
Question 9. In investment returns, a received amount is subtracted from an invested amount which is used to calculate
  1.    dollar received
  2.    dollar return
  3.    dollar invested
  4.    return percentage
 Discuss Question
Answer: Option B. -> dollar return
Answer: (b).dollar return
Question 10. An inflation free rate of return and inflation premium are the two components of
  1.    quoted rate
  2.    unquoted rate
  3.    steeper rate
  4.    portfolio rate
 Discuss Question
Answer: Option A. -> quoted rate
Answer: (a).quoted rate

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