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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)
In regression of capital asset pricing model, an intercept of excess returns is classified as
Sharpe’s reward to variability ratio
tenor’s reward to volatility ratio
Jensen’s alpha
tenor’s variance to volatility ratio
Author:
rikazzz
Comment
Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM)
The negative minimum risk portfolio of any security shows that market security sold
less than original price
greater than original price
equal to original price
equal to sum of stocks
Author:
rikazzz
Comment
Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM)
The first step in determining an efficient portfolio is to consider
set of attainable portfolios
set of unattainable portfolios
set of attributable portfolios
set of attributable portfolios
Author:
rikazzz
Comment
Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM)
The beta reflects the stock risk for investors which is usually
individual
collective
weighted
linear
Author:
rikazzz
Comment
Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM)
The formula written as market risk premium divided by standard deviations of returns on market portfolio is used to calculate
capital market line
security market line
fixed market line
variable market line
Author:
rikazzz
Comment
Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM)
The betas that are constantly adjusted to reflect changes in capital structure and firms operations are classified as
fundamental structure
fundamental adjustment
fundamental betas
fundamental operations
Author:
rikazzz
Comment
Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM)
The capital market line reflects an attitude of investors towards risk which is considered as an/a
non-aggregate
effective
ineffective
aggregate
Author:
rikazzz
Comment
Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM)
In capital asset pricing model, the investors assume that buying and selling activity will
affect stock prices
not affect stock prices
have high taxes
high transaction cost
Author:
rikazzz
Comment
Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM)
The stocks which has lower book for market ratio are considered as
optimistic
more risky
less risky
pessimistic
Author:
rikazzz
Comment
Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM)
In arbitrage pricing theory, the higher required rate of return is usually paid on the stock
higher market risk
higher dividend
lower dividend
lower market risk
Author:
rikazzz
Comment
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