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MCQs

Total Questions : 141 | Page 3 of 15 pages
Question 21. An amount invested is $2000 and the dollar return is $200 then the rate of return would be
  1.    0.001
  2.    0.1
  3.    1800
  4.    2200
 Discuss Question
Answer: Option B. -> 0.1
Answer: (b).0.1
Question 22. The stock which has higher correlation with market tend to have
  1.    high beta, less risky
  2.    low beta, more risky
  3.    high beta, more risky
  4.    low beta, less risky
 Discuss Question
Answer: Option C. -> high beta, more risky
Answer: (c).high beta, more risky
Question 23. The chance of happening any unfavorable event in near future is classified as
  1.    chance
  2.    event happening
  3.    probability
  4.    risk
 Discuss Question
Answer: Option D. -> risk
Answer: (d).risk
Question 24. A tighter probability distribution shows the
  1.    higher risk
  2.    lower risk
  3.    expected risk
  4.    peaked risk
 Discuss Question
Answer: Option B. -> lower risk
Answer: (b).lower risk
Question 25. A risk which is classified as its contribution to risk of portfolio is classified as
  1.    classified risk
  2.    contributed risk
  3.    irrelevant risk
  4.    relevant risk
 Discuss Question
Answer: Option D. -> relevant risk
Answer: (d).relevant risk
Question 26. The relationship between risk and required return is classified as
  1.    security market line
  2.    required return line
  3.    market risk line
  4.    riskier return line
 Discuss Question
Answer: Option A. -> security market line
Answer: (a).security market line
Question 27. The risk in average individual stock can be reduced by placing an individual stock in
  1.    low risk portfolio
  2.    diversified portfolio
  3.    undiversified portfolio
  4.    high risk portfolio
 Discuss Question
Answer: Option B. -> diversified portfolio
Answer: (b).diversified portfolio
Question 28. The tendency of moving together of two variables is classified as
  1.    correlation
  2.    move tendency
  3.    variables tendency
  4.    double tendency
 Discuss Question
Answer: Option A. -> correlation
Answer: (a).correlation
Question 29. The required return is 15% and the premium for risk is 11% then the risk free return would be
  1.    0.26
  2.    0.04
  3.    165
  4.    0.0136
 Discuss Question
Answer: Option B. -> 0.04
Answer: (b).0.04
Question 30. Of all the stocks in a portfolio, the required rate of return is classified as
  1.    return portfolio
  2.    in volatile portfolio
  3.    volatile portfolio
  4.    market portfolio
 Discuss Question
Answer: Option D. -> market portfolio
Answer: (d).market portfolio

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