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Total Questions : 141 | Page 13 of 15 pages
Question 121. In the portfolio, the beta of individual security in portfolio represented as their weighted average is classified as
  1.    average of portfolio
  2.    beta of portfolio
  3.    weighted portfolio
  4.    collective stocks
 Discuss Question
Answer: Option B. -> beta of portfolio
Answer: (b).beta of portfolio
Question 122. An amount invested is $2500 and an amount received is $1500 then the dollar return will be
  1.    −$4000
  2.    4000
  3.    −$1000
  4.    1000
 Discuss Question
Answer: Option C. -> −$1000
Answer: (c).−$1000
Question 123. The standard deviation is 18% and the coefficient of variation is 1.5% an expected rate of return will be
  1.    0.27
  2.    0.12
  3.    0.195
  4.    none of the above
 Discuss Question
Answer: Option C. -> 0.195
Answer: (c).0.195
Question 124. The stocks in the market portfolio are graphically represented with
  1.    dashed line
  2.    straight line
  3.    market line
  4.    risk line
 Discuss Question
Answer: Option A. -> dashed line
Answer: (a).dashed line
Question 125. The method and model used to analyze the relationship between rates of return and risk is classified as
  1.    capital asset pricing model
  2.    portfolio asset pricing model
  3.    asset market pricing model
  4.    portfolio pricing model
 Discuss Question
Answer: Option A. -> capital asset pricing model
Answer: (a).capital asset pricing model
Question 126. An additional desired compensation by investors for assuming an additional risk on investment is classified as
  1.    risk premium
  2.    investor premium
  3.    additional premium
  4.    assumed premium
 Discuss Question
Answer: Option A. -> risk premium
Answer: (a).risk premium
Question 127. The difference between actual return on stock and the predicted return is considered as
  1.    probability error
  2.    actual error
  3.    prediction error
  4.    random error
 Discuss Question
Answer: Option D. -> random error
Answer: (d).random error
Question 128. The first step in determining an efficient portfolio is to consider
  1.    set of attainable portfolios
  2.    set of unattainable portfolios
  3.    set of attributable portfolios
  4.    set of attributable portfolios
 Discuss Question
Answer: Option A. -> set of attainable portfolios
Answer: (a).set of attainable portfolios
Question 129. The complex statistical and mathematical theory is an approach, which is classified as
  1.    arbitrage pricing theory
  2.    arbitrage risk theory
  3.    arbitrage dividend theory
  4.    arbitrage market theory
 Discuss Question
Answer: Option A. -> arbitrage pricing theory
Answer: (a).arbitrage pricing theory
Question 130. The tendency of people to blame failure on bad luck but given tribute of success to themselves is classified as
  1.    self attribution bias
  2.    self success bias
  3.    self failure bias
  4.    self condition bias
 Discuss Question
Answer: Option A. -> self attribution bias
Answer: (a).self attribution bias

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