Sail E0 Webinar

MCQs

Total Questions : 141 | Page 2 of 15 pages
Question 11. In capital asset pricing model, the stock with the high standard deviation tend to have
  1.    low variation
  2.    low beta
  3.    high beta
  4.    high variation
 Discuss Question
Answer: Option B. -> low beta
Answer: (b).low beta
Question 12. The standard deviation is 18% and the expected return is 15.5% then the coefficient of variation would be
  1.    0.00861
  2.    0.01161
  3.    0.025
  4.    −2.5%
 Discuss Question
Answer: Option B. -> 0.01161
Answer: (b).0.01161
Question 13. In the asset portfolio, the number of stocks are increased to
  1.    reduce return
  2.    reduce average
  3.    reduce risk
  4.    increase prices
 Discuss Question
Answer: Option C. -> reduce risk
Answer: (c).reduce risk
Question 14. If the stock has a great risk related to it then a required return is
  1.    higher
  2.    lower
  3.    zero
  4.    all of the above
 Discuss Question
Answer: Option A. -> higher
Answer: (a).higher
Question 15. The standard deviation is divided by the expected rate of return is used to calculate
  1.    coefficient of variation
  2.    coefficient of deviation
  3.    coefficient of standard
  4.    coefficient of return
 Discuss Question
Answer: Option A. -> coefficient of variation
Answer: (a).coefficient of variation
Question 16. In arbitrage pricing theory, the required returns are functioned of two factors which have
  1.    dividend policy
  2.    market risk
  3.    historical policy
  4.    both a and b
 Discuss Question
Answer: Option D. -> both a and b
Answer: (d).both a and b
Question 17. If the book value is greater than market value comparison with the investors for future stock are considered as
  1.    pessimistic
  2.    optimistic
  3.    experienced
  4.    inexperienced
 Discuss Question
Answer: Option A. -> pessimistic
Answer: (a).pessimistic
Question 18. The slope coefficient of beta is classified statistically significant if its probability is
  1.    greater than 5%
  2.    equal to 5%
  3.    less than 5%
  4.    less than 2%
 Discuss Question
Answer: Option C. -> less than 5%
Answer: (c).less than 5%
Question 19. An average return of portfolio divided by its coefficient of beta is classified as
  1.    Sharpe's reward to variability ratio
  2.    treynor's reward to volatility ratio
  3.    Jensen's alpha
  4.    treynor's variance to volatility ratio
 Discuss Question
Answer: Option B. -> treynor's reward to volatility ratio
Answer: (b).treynor's reward to volatility ratio
Question 20. The second factor in the Fama French three factor model is the
  1.    size of industry
  2.    size of market
  3.    size of company
  4.    size of portfolio
 Discuss Question
Answer: Option C. -> size of company
Answer: (c).size of company

Latest Videos

Latest Test Papers