MCQGeeks
0 : 0 : 1
CBSE
JEE
NTSE
NEET
English
UK Quiz
Quiz
Driving Test
Practice
Games
Quiz
Commerce
Financial Management
Quiz 20
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
Q.1
Preferred dividend is Rs 50 and required rate of return is 2.5% then value of preferred stock would be
Rs 20.00
Rs 125.00
Rs 2,000.00
Rs 52.50
Q.2
In expected rate of return for constant growth, stock price must grow according to an expected rate and
at same price
at different price
at yielded price
at buying price
Q.3
In capital asset pricing model, an amount of risk that stock contributes to portfolio of market is classified as
stand-alone coefficient
relevant coefficient
alpha coefficient
beta coefficient
Q.4
An amount invested is Rs 2500 and an amount received is Rs 1500 then return will be
-Rs 4,000.00
Rs 4,000.00
-Rs 1,000.00
Rs 1,000.00
Q.5
Chance of occurrence of any event is classified as
probability
risk
chance
event happening
Q.6
According to market risk premium, an amount of risk premium depends upon investor
risk taking
risk aversion
market aversion
portfolio aversion
Q.7
An estimation by marginal investor, a higher expected return is earned on
more risky securities
less risky securities
less premium
high premium
Q.8
Term structure premium, an inflation of bond and bond default premium are included in
risk factors
premium factors
bond buying factors
multi model
Q.9
Rational traders immediately buy stock when price is
too low
too high
conditional
inefficient portfolio
Q.10
Dividend present value for period of non-constant growth in addition with horizon value is used to calculate
stock extrinsic value
stock intrinsic value
dividend intrinsic value
stock intrinsic value
Q.11
Case in which average investors risk aversion is greater than slope of line and risk premium respectively is
steeper, greater
steeper, smaller
steeper, zero
Both A and B
Q.12
Expected returns weighted average on assets in portfolio is considered as
weighted portfolio
expected return on portfolio
coefficient of portfolio
expected assets
Q.13
Correct measure of risk of stock is called
alpha
beta
variance
market relevance
Q.14
An additional desired compensation by investors for assuming an additional risk on investment is classified as
risk premium
investor premium
additional premium
assumed premium
Q.15
Method and model used to analyze relationship between rates of return and risk is classified as
capital asset pricing model
portfolio asset pricing model
asset market pricing model
portfolio pricing model
Q.16
Stocks in market portfolio are graphically represented with
dashed line
straight line
market line
risk line
Q.17
When changes in patents and industry competition occur, required rate of return
changes
does not change
becomes zero
becomes one
Q.18
Type of premium asked by investors for bearing risk on average stock is classified as
average premium
market risk premium
stock premium
buying discount
Q.19
Mostly in financials, risk of portfolio is smaller than that of assets
mean
weighted average
mean correlation
negative correlation
Q.20
If risk can be eliminated with help of diversification, then relevant risk is
smaller than stand-alone risk
larger than stand-alone risk
smaller than diverse risk
larger than diverse risk
Q.21
Tendency of moving together of two variables is classified as
correlation
move tendency
variables tendency
double tendency
Q.22
Coefficient of variation is used to identify an effect of
risk
return
deviation
Both A and B
Q.23
Portfolio which consists of perfectly positive correlated assets having no effect of
negativity
positivity
correlation
diversification
Q.24
Weighted average of probabilities is classified as
average rate of return
expected rate of return
past rate of return
weighted rate of return
Q.25
Standard deviation is 18% and coefficient of variation is 1.5% an expected rate of return will be
27.00%
12.00%
19.50%
none of above
Q.26
Stock with large amount of contribution of risk in a diversified portfolio is represented by
high beta and standard deviation
high beta, low standard deviation
low beta, low standard deviation
low beta, low variance
Q.27
Treasury yielded by bond is 7% and market required return is 13% then market risk premium will be
2.16%
20.00%
6.00%
0.53%
Q.28
Of all stocks in a portfolio, required rate of return is classified as
return portfolio
in volatile portfolio
volatile portfolio
market portfolio
Q.29
Risk in average individual stock can be reduced by placing an individual stock in
low risk portfolio
diversified portfolio
undiversified portfolio
high risk portfolio
Q.30
Required return is 15% and premium for risk is 11% then risk free return would be
26.00%
4.00%
16.50%
1.36%
Q.31
A risk which is classified as its contribution to risk of portfolio is classified as
classified risk
contributed risk
irrelevant risk
relevant risk
Q.32
Chance of happening any unfavourable event in near future is classified as
chance
event happening
probability
risk
Q.33
In portfolio, beta of individual security in portfolio represented as their weighted average is classified as
average of portfolio
beta of portfolio
weighted portfolio
collective stocks
Q.34
Coefficient of beta is used to measure stock volatility
coefficient of market
relative to market
irrelative to market
same with market
Q.35
Probability distribution is classified as normal if expected return lies between
( + 1 and -1)
( + 2 and -2)
( + 3 and -3)
( + 4 and -4)
Q.36
Market risk and diversifiable risk are two components of
stock's risk
portfolio risk
expected return
stock return
Q.37
Market risk premium is 8% and risk free return is 7% then market required return would be
15.00%
1.00%
5.60%
1.14%
Q.38
Greater chance of lower actual return than expected return and greater variation is indicated by
smaller standard deviation
larger standard deviation
smaller variance
larger variance
Q.39
Tendency of measuring correlation of two variables is classified as
tendency coefficient
variable coefficient
correlation coefficient
double coefficient
Q.40
Size of firm and market or book ratio are variables which are related to
premium returns
unquoted returns
quoted returns
stock returns
Q.41
In asset portfolio, number of stocks are increased to
reduce return
reduce average
reduce risk
increase prices
Q.42
Standard deviation is 18% and expected return is 15.5% then coefficient of variation would be
0.86%
1.16%
2.50%
-2.50%
Q.43
Market required return is subtracted from risk free rate which is used to calculate
quoted risk premium
market risk premium
portfolio risk premium
unquoted risk premium
Q.44
A tighter probability distribution shows the
higher risk
lower risk
expected risk
peaked risk
Q.45
Stock which has higher correlation with market tend to have
high beta, less risky
low beta, more risky
high beta, more risky
low beta, less risky
Q.46
A model in which behavior of asset returns is measured for set of risk factors and market risk is classified as
factorization model
Two factor model
multifactor model
quoted factor model
Q.47
Relationship between risk and required return is classified as
security market line
required return line
market risk line
risky return line
Q.48
Standard deviation is divided by expected rate of return is used to calculate
coefficient of variation
coefficient of deviation
coefficient of standard
coefficient of return
Q.49
If stock has a great risk related to it than a required return is
higher
lower
zero
all of above
Q.50
An amount invested is Rs 2000 and return is Rs 200 then rate of return would be
0.10%
10.00%
Rs 1,800.00
Rs 2,200.00
0 h : 0 m : 1 s
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
Report Question
×
What's an issue?
Question is wrong
Answer is wrong
Other Reason
Want to elaborate a bit more? (optional)
Support mcqgeeks.com by disabling your adblocker.
×
Please disable the adBlock and continue.
Thank you.
Reload page