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Total Questions : 141 | Page 14 of 15 pages
Question 131. The stock portfolio with the highest book to market ratios is considered as
  1.    H portfolio
  2.    L portfolio
  3.    S portfolio
  4.    B to M portfolio
 Discuss Question
Answer: Option A. -> H portfolio
Answer: (a).H portfolio
Question 132. The rational traders immediately buy the stock when the price is
  1.    too low
  2.    too high
  3.    conditional
  4.    inefficient portfolio
 Discuss Question
Answer: Option A. -> too low
Answer: (a).too low
Question 133. If the market value is greater than book value then the investors for future stock are considered as
  1.    experienced
  2.    inexperienced
  3.    pessimistic
  4.    optimistic
 Discuss Question
Answer: Option D. -> optimistic
Answer: (d).optimistic
Question 134. The second step in determining efficient portfolios is to consider efficient subset from the set of
  1.    attainable portfolios
  2.    unattainable portfolios
  3.    attributable portfolios
  4.    non-attributable portfolio
 Discuss Question
Answer: Option A. -> attainable portfolios
Answer: (a).attainable portfolios
Question 135. All the points lie on the line if the degree of dispersion is
  1.    four
  2.    one
  3.    two
  4.    five
 Discuss Question
Answer: Option B. -> one
Answer: (b).one
Question 136. A high portfolio return is subtracted from low portfolio return to calculate
  1.    HML portfolio
  2.    R portfolio
  3.    subtracted portfolio
  4.    ML portfolio
 Discuss Question
Answer: Option A. -> HML portfolio
Answer: (a).HML portfolio
Question 137. According to capital asset pricing model assumptions, the investors will borrow unlimited amount of capital at any given
  1.    identical and fixed returns
  2.    risk free rate of interest
  3.    fixed rate of interest
  4.    risk free expected return
 Discuss Question
Answer: Option B. -> risk free rate of interest
Answer: (b).risk free rate of interest
Question 138. In calculation of betas, an adjusted betas are highly dependent on historical
  1.    unadjusted betas
  2.    adjusted historical betas
  3.    fundamental historical betas
  4.    fundamental varied betas
 Discuss Question
Answer: Option A. -> unadjusted betas
Answer: (a).unadjusted betas
Question 139. In capital market line, the risk of efficient portfolio is measured by its
  1.    standard deviation
  2.    variance
  3.    aggregate risk
  4.    ineffective risk
 Discuss Question
Answer: Option A. -> standard deviation
Answer: (a).standard deviation
Question 140. A curve which shows attitude towards risk just the way reflected in return trade-off function is classified as
  1.    difference curve
  2.    indifference curve
  3.    efficiency curve
  4.    affectivity curve
 Discuss Question
Answer: Option B. -> indifference curve
Answer: (b).indifference curve

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