Q.1
Preferred dividend is Rs 50 and required rate of return is 2.5% then value of preferred stock would be
Q.2
In expected rate of return for constant growth, stock price must grow according to an expected rate and
Q.3
In capital asset pricing model, an amount of risk that stock contributes to portfolio of market is classified as
Q.4
An amount invested is Rs 2500 and an amount received is Rs 1500 then return will be
Q.5
Chance of occurrence of any event is classified as
Q.6
According to market risk premium, an amount of risk premium depends upon investor
Q.7
An estimation by marginal investor, a higher expected return is earned on
Q.8
Term structure premium, an inflation of bond and bond default premium are included in
Q.9
Rational traders immediately buy stock when price is
Q.10
Dividend present value for period of non-constant growth in addition with horizon value is used to calculate
Q.11
Case in which average investors risk aversion is greater than slope of line and risk premium respectively is
Q.12
Expected returns weighted average on assets in portfolio is considered as
Q.13
Correct measure of risk of stock is called
Q.14
An additional desired compensation by investors for assuming an additional risk on investment is classified as
Q.15
Method and model used to analyze relationship between rates of return and risk is classified as
Q.16
Stocks in market portfolio are graphically represented with
Q.17
When changes in patents and industry competition occur, required rate of return
Q.18
Type of premium asked by investors for bearing risk on average stock is classified as
Q.19
Mostly in financials, risk of portfolio is smaller than that of assets
Q.20
If risk can be eliminated with help of diversification, then relevant risk is
Q.21
Tendency of moving together of two variables is classified as
Q.22
Coefficient of variation is used to identify an effect of
Q.23
Portfolio which consists of perfectly positive correlated assets having no effect of
Q.24
Weighted average of probabilities is classified as
Q.25
Standard deviation is 18% and coefficient of variation is 1.5% an expected rate of return will be
Q.26
Stock with large amount of contribution of risk in a diversified portfolio is represented by
Q.27
Treasury yielded by bond is 7% and market required return is 13% then market risk premium will be
Q.28
Of all stocks in a portfolio, required rate of return is classified as
Q.29
Risk in average individual stock can be reduced by placing an individual stock in
Q.30
Required return is 15% and premium for risk is 11% then risk free return would be
Q.31
A risk which is classified as its contribution to risk of portfolio is classified as
Q.32
Chance of happening any unfavourable event in near future is classified as
Q.33
In portfolio, beta of individual security in portfolio represented as their weighted average is classified as
Q.34
Coefficient of beta is used to measure stock volatility
Q.35
Probability distribution is classified as normal if expected return lies between
Q.36
Market risk and diversifiable risk are two components of
Q.37
Market risk premium is 8% and risk free return is 7% then market required return would be
Q.38
Greater chance of lower actual return than expected return and greater variation is indicated by
Q.39
Tendency of measuring correlation of two variables is classified as
Q.40
Size of firm and market or book ratio are variables which are related to
Q.41
In asset portfolio, number of stocks are increased to
Q.42
Standard deviation is 18% and expected return is 15.5% then coefficient of variation would be
Q.43
Market required return is subtracted from risk free rate which is used to calculate
Q.44
A tighter probability distribution shows the
Q.45
Stock which has higher correlation with market tend to have
Q.46
A model in which behavior of asset returns is measured for set of risk factors and market risk is classified as
Q.47
Relationship between risk and required return is classified as
Q.48
Standard deviation is divided by expected rate of return is used to calculate
Q.49
If stock has a great risk related to it than a required return is
Q.50
An amount invested is Rs 2000 and return is Rs 200 then rate of return would be
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