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MCQs

Total Questions : 141 | Page 9 of 15 pages
Question 81. Mostly in financials, the risk of portfolio is smaller than that of asset's
  1.    mean
  2.    weighted average
  3.    mean correlation
  4.    negative correlation
 Discuss Question
Answer: Option B. -> weighted average
Answer: (b).weighted average
Question 82. The Treasury yielded by bond is 7% and the market required return is 13% then market risk premium will be
  1.    0.0216
  2.    0.2
  3.    0.06
  4.    0.0053
 Discuss Question
Answer: Option C. -> 0.06
Answer: (c).0.06
Question 83. The chance of occurrence of any event is classified as
  1.    probability
  2.    risk
  3.    chance
  4.    event happening
 Discuss Question
Answer: Option A. -> probability
Answer: (a).probability
Question 84. In an individual stock, the relevant risk is classified as
  1.    alpha coefficient
  2.    beta coefficient
  3.    stand-alone coefficient
  4.    relevant coefficient
 Discuss Question
Answer: Option B. -> beta coefficient
Answer: (b).beta coefficient
Question 85. When the changes in patents and industry competition occur, the required rate of return
  1.    changes
  2.    does not change
  3.    becomes zero
  4.    becomes one
 Discuss Question
Answer: Option B. -> does not change
Answer: (b).does not change
Question 86. According to market risk premium, an amount of risk premium depends upon the investor
  1.    risk taking
  2.    risk aversion
  3.    market aversion
  4.    portfolio aversion
 Discuss Question
Answer: Option B. -> risk aversion
Answer: (b).risk aversion
Question 87. The type of premium asked by the investors for bearing the risk on average stock is classified as
  1.    average premium
  2.    market risk premium
  3.    stock premium
  4.    buying discount
 Discuss Question
Answer: Option B. -> market risk premium
Answer: (b).market risk premium
Question 88. The portfolio which consists of perfectly positive correlated assets having no effect of
  1.    negativity
  2.    positivity
  3.    correlation
  4.    diversification
 Discuss Question
Answer: Option D. -> diversification
Answer: (d).diversification
Question 89. The market risk premium is 8% and the risk free return is 7% then the market required return would be
  1.    0.15
  2.    0.01
  3.    56
  4.    0.01142
 Discuss Question
Answer: Option A. -> 0.15
Answer: (a).0.15
Question 90. The weighted average of the probabilities is classified as
  1.    average rate of return
  2.    expected rate of return
  3.    past rate of return
  4.    weighted rate of return
 Discuss Question
Answer: Option B. -> expected rate of return
Answer: (b).expected rate of return

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