Finance MCQs

Page No. 11

Correct measure of risk of stock is called_____________?


aAlpha


bBeta


cVariance


dMarket relevance


View Answer Beta

Portfolio which consists of perfectly positive correlated assets having no effect of___________?


aNegativity


bPositivity


cCorrelation


dDiversification


View Answer Diversification

Mostly in financials, risk of portfolio is smaller than that of asset’s________?


aMean


bWeighted average


cMean correlation


d Negative correlation


View Answer Weighted average

Coefficient of beta is used to measure stock volatility_____________?


aCoefficient of market


bRelative to market


cIr-relative to market


dSame with market


View Answer Relative to market

Relationship between risk and required return is classified as___________?


aSecurity market line


bRequired return line


cMarket risk line


dRiskier return line


View Answer Security market line

Tendency of moving together of two variables is classified as_____________?


aCorrelation


bMove tendency


cVariables tendency


dDouble tendency


View Answer Correlation

Chance of occurrence of any event is classified as_____________?


aProbability


bRisk


cChance


dEvent happening


View Answer Probability

Term structure premium, an inflation of bond and bond default premium are included in_________________?


aRisk factors


bPremium factors


cBond buying factors


dMulti model


View Answer Risk factors

Tendency of measuring correlation of two variables is classified as_________?


aTendency coefficient


bVariable coefficient


cCorrelation coefficient


dDouble coefficient



Stock which has higher correlation with market tend to have__________?


aHigh beta, less risky


bLow beta, more risky


cHigh beta, more risky


dLow beta, less risky


View Answer High beta, more risky

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