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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 tendency of people to blame failure on bad luck but given tribute of success to themselves is classified as
self attribution bias
self success bias
self failure bias
self condition bias
Author:
rikazzz
Comment
Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM)
The formula written as 0.67(Historical Beta) + 0.35(1.0) is used to calculate
historical betas
adjusted betas
standard betas
varied betas
Author:
rikazzz
Comment
Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM)
According to Fama French Three-Factor model, the market value of company equity is used to calculate
size of portfolio
size of industry
size of market
size of company
Author:
rikazzz
Comment
Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM)
According to capital asset pricing model assumptions, the quantities of all the assets are
given and fixed
not given and fixed
not given and variable
given and variable
Author:
rikazzz
Comment
Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM)
The rational traders immediately buy the stock when the price is
too low
too high
conditional
inefficient portfolio
Author:
rikazzz
Comment
Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM)
The third factor in the Fama French three factor model is the ratio which is classified as
book to market ratio
market to book ratio
company to industry ratio
stock to portfolio ratio
Author:
rikazzz
Comment
Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM)
The difference between actual return on stock and the predicted return is considered as
probability error
actual error
prediction error
random error
Author:
rikazzz
Comment
Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM)
If the book value is greater than market value comparison with the investors for future stock are considered as
pessimistic
optimistic
experienced
inexperienced
Author:
rikazzz
Comment
Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM)
An average return of portfolio divided by its coefficient of beta is classified as
Sharpe’s reward to variability ratio
treynor’s reward to volatility ratio
Jensen’s alpha
treynor’s variance to volatility ratio
Author:
rikazzz
Comment
Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM)
For any or lower degree of risk, the highest or any expected return are the concepts use in
riskier portfolios
behavior portfolios
inefficient portfolios
efficient portfolios
Author:
rikazzz
Comment
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