Finance MCQs

Page No. 13

Standard deviation of tighter probability distribution is____________?


aLong-termed

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bShort-termed

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cRiskier

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dSmaller

✓


View Answer Smaller

Sum of market risk and diversifiable risk are classified as total risk which is equivalent to_______________?


aSharpe’s alpha

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bStandard alpha’s

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cAlpha’s variance

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dVariance

✓


View Answer Variance

Two alternative expected returns are compared with help of__________?


aCoefficient of variation

✓


bCoefficient of deviationCoefficient of standard

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cCoefficient of standard

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dCoefficient of return

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An inflation free rate of return and inflation premium is two components of_________?


aQuoted rate

✓


bUnquoted rate

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cSteeper rate

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dPortfolio rate

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View Answer Quoted rate

An analysis of decision making of investors and managers is classified as_________?


aRiskier finance

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bBehavioral finance

✓


cPremium finance

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dBuying finance

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View Answer Behavioral finance

Risk affects any firm with factors such as war, recessions, inflation and high interest rates is classified as____________?


aDiversifiable risk

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bMarket risk

✓


cStock risk

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dPortfolio risk

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View Answer Market risk

Positive minimum risk portfolio of any security shows that market security sold____________?


aEqual to original priceEqual to sum of stocks

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bEqual to sum of stocks

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cLess than original price

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dGreater than original price

✓



Stock issued by company have lower rate of return because of___________?


aHigh market to book ratio

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bLow book to market ratio

✓


cLow market to book ratio

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dHigh book to market ratio

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In capital asset pricing model, assumptions must be followed including________?


aNo taxes

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bNo transaction costs

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cFixed quantities of assets

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dAll of above

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View Answer All of above

Type of relationship exists between an expected return and risk of portfolio is classified as___________?


aNon-linear

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bLinear

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cFixed and aggregate

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dNon-fixed and non-aggregate

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View Answer Linear

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