Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM)
The stock issued by company have lower rate of return because of
high market to book ratio
low book to market ratio
low market to book ratio
high book to market ratio
low book to market ratio
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The future beta is needed to calculate in most situations is classified asA. historical betas
B. adjusted betas
C. standard betas
D. varied betas
In capital market line, the risk of efficient portfolio is measured by its
A. standard deviation
B. variance
C. aggregate risk
D. ineffective risk
The stock portfolio with the highest book to market ratios is considered as
A. H portfolio
B. L portfolio
C. S portfolio
D. B to M portfolio
The complex statistical and mathematical theory is an approach, which is classified as
A. arbitrage pricing theory
B. arbitrage risk theory
C. arbitrage dividend theory
D. arbitrage market theory
For any or lower degree of risk, the highest or any expected return are the concepts use in
A. riskier portfolios
B. behavior portfolios
C. inefficient portfolios
D. efficient portfolios
An average return of portfolio divided by its coefficient of beta is classified as
A. Sharpe’s reward to variability ratio
B. treynor’s reward to volatility ratio
C. Jensen’s alpha
D. treynor’s variance to volatility ratio
If the book value is greater than market value comparison with the investors for future stock are considered as
A. pessimistic
B. optimistic
C. experienced
D. inexperienced
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