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Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM)
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Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM)
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Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM)
The stock issued by company have higher rate of return because of
low market to book ratio
high book to market ratio
high market to book ratio
low book to market ratio
Author:
rikazzz
Comment
Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM)
In capital asset pricing model, the assumptions must be followed including
no taxes
no transaction costs
fixed quantities of assets
all of the above
Author:
rikazzz
Comment
Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM)
If the market value is greater than book value then the investors for future stock are considered as
experienced
inexperienced
pessimistic
optimistic
Author:
rikazzz
Comment
Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM)
The rational traders immediately sell the stock when the price is
conditional
inefficient portfolio
too low
too high
Author:
rikazzz
Comment
Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM)
The type of relationship exists between an expected return and risk of portfolio is classified as
non-linear
linear
fixed and aggregate
non-fixed and non-aggregate
Author:
rikazzz
Comment
Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM)
In capital asset pricing model, the covariance between stock and the market is divided by variance of market returns is used to calculate
sales turnover of company
risk rate of company
beta coefficient of company
weighted mean of company
Author:
rikazzz
Comment
Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM)
A model which regresses the return of stock against the return of market is classified as
regression model
market model
error model
risk free model
Author:
rikazzz
Comment
Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM)
According to capital asset pricing model assumptions, the investors will borrow unlimited amount of capital at any given
identical and fixed returns
risk free rate of interest
fixed rate of interest
risk free expected return
Author:
rikazzz
Comment
Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM)
The relationship between total risk of stock, diversifiable risk and market risk is classified as
total risk
standard deviation
standard alpha
treynor alpha
Author:
rikazzz
Comment
Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM)
The positive minimum risk portfolio of any security shows that market security sold
equal to original price
equal to sum of stocks
less than original price
greater than original price
Author:
rikazzz
Comment
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