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MCQs

Total Questions : 141 | Page 5 of 15 pages
Question 41. In capital asset pricing model, the covariance between stock and the market is divided by variance of market returns is used to calculate
  1.    sales turnover of company
  2.    risk rate of company
  3.    beta coefficient of company
  4.    weighted mean of company
 Discuss Question
Answer: Option C. -> beta coefficient of company
Answer: (c).beta coefficient of company
Question 42. The capital market line reflects an attitude of investors towards risk which is considered as an/a
  1.    non-aggregate
  2.    effective
  3.    ineffective
  4.    aggregate
 Discuss Question
Answer: Option D. -> aggregate
Answer: (d).aggregate
Question 43. In capital asset pricing model, the characteristic line is classified as
  1.    regression line
  2.    probability line
  3.    scattered points
  4.    weighted line
 Discuss Question
Answer: Option A. -> regression line
Answer: (a).regression line
Question 44. A theory which states that the assets are traded at the price equal to its intrinsic value is classified as
  1.    efficient money hypothesis
  2.    efficient market hypothesis
  3.    inefficient market hypothesis
  4.    inefficient money hypothesis
 Discuss Question
Answer: Option B. -> efficient market hypothesis
Answer: (b).efficient market hypothesis
Question 45. All the assets are perfectly divisible and liquid in
  1.    tax free pricing model
  2.    cost free pricing model
  3.    capital asset pricing model
  4.    stock pricing model
 Discuss Question
Answer: Option C. -> capital asset pricing model
Answer: (c).capital asset pricing model
Question 46. The relationship between risk free asset and a single risky asset are always
  1.    linear
  2.    non-linear
  3.    efficient
  4.    effective
 Discuss Question
Answer: Option A. -> linear
Answer: (a).linear
Question 47. The gross domestic product, the world economy strength and level of inflation are the factors which is used to determine
  1.    market realized return
  2.    portfolio realized return
  3.    portfolio arbitrage risk
  4.    arbitrage theory of return
 Discuss Question
Answer: Option A. -> market realized return
Answer: (a).market realized return
Question 48. The rational traders immediately sell the stock when the price is
  1.    conditional
  2.    inefficient portfolio
  3.    too low
  4.    too high
 Discuss Question
Answer: Option D. -> too high
Answer: (d).too high
Question 49. The riskless rate in addition with risk premium is multiplied by standard deviation of portfolio for using to calculate expected return rate on
  1.    efficient portfolio
  2.    inefficient portfolio
  3.    attributable portfolio
  4.    non-attributable portfolio
 Discuss Question
Answer: Option A. -> efficient portfolio
Answer: (a).efficient portfolio
Question 50. The stock issued by company have lower rate of return because of
  1.    high market to book ratio
  2.    low book to market ratio
  3.    low market to book ratio
  4.    high book to market ratio
 Discuss Question
Answer: Option B. -> low book to market ratio
Answer: (b).low book to market ratio

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