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Risk-Return Relationship and the Capital Asset Pricing Model (CAPM)
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Risk-Return Relationship and the Capital Asset Pricing Model (CAPM)
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Risk-Return Relationship and the Capital Asset Pricing Model (CAPM)
The coefficient of variation is used to identify an effect of
risk
return
deviation
Both A and B
Author:
rikazzz
Comment
Risk-Return Relationship and the Capital Asset Pricing Model (CAPM)
The risk on a stock portfolio which cannot be eliminated or reduced by placing it in diversified portfolio is classified as
diversifiable risk
market risk
stock risk
portfolio risk
Author:
rikazzz
Comment
Risk-Return Relationship and the Capital Asset Pricing Model (CAPM)
An amount invested is $4000 and the dollar return is $300 then the rate of return will be
4300
3700
0.075
0.00075
Author:
rikazzz
Comment
Risk-Return Relationship and the Capital Asset Pricing Model (CAPM)
If the risk can be eliminated with the help of diversification, then the relevant risk is
smaller than stand-alone risk
larger than stand-alone risk
smaller than diverse risk
larger than diverse risk
Author:
rikazzz
Comment
Risk-Return Relationship and the Capital Asset Pricing Model (CAPM)
The required return is 11% and the premium for risk is 8% then the risk free return will be
0.03
0.19
0.0072
0.01375
Author:
rikazzz
Comment
Risk-Return Relationship and the Capital Asset Pricing Model (CAPM)
In expected future returns, the tighter probability distribution shows risk on given investment which is
smaller
greater
less risky
highly riskier
Author:
rikazzz
Comment
Risk-Return Relationship and the Capital Asset Pricing Model (CAPM)
The Treasury yielded by bond is 7% and the market required return is 13% then market risk premium will be
0.0216
0.2
0.06
0.0053
Author:
rikazzz
Comment
Risk-Return Relationship and the Capital Asset Pricing Model (CAPM)
If the stock has a great risk related to it then a required return is
higher
lower
zero
all of the above
Author:
rikazzz
Comment
Risk-Return Relationship and the Capital Asset Pricing Model (CAPM)
The case in which average investors risk aversion is greater then the slope of line and risk premium respectively is
steeper, greater
steeper, smaller
steeper, zero
Both A and B
Author:
rikazzz
Comment
Risk-Return Relationship and the Capital Asset Pricing Model (CAPM)
The market risk premium is 8% and the risk free return is 7% then the market required return would be
0.15
0.01
56
0.01142
Author:
rikazzz
Comment
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