Question

The riskless rate in addition with risk premium is multiplied by standard deviation of portfolio for using to calculate expected return rate on

a.

efficient portfolio

b.

inefficient portfolio

c.

attributable portfolio

d.

non-attributable portfolio

Answer: (a).efficient portfolio

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. The riskless rate in addition with risk premium is multiplied by standard deviation of portfolio for using to calculate expected return rate on

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. The realized and required return for individual stocks are classified as function of fundamental

Q. The first factor in the Fama French three factor model is

Q. A line which shows the relationship between an expected return and risk on efficient portfolio is considered as

Q. The relationship between total risk of stock, diversifiable risk and market risk is classified as

Q. In arbitrage pricing theory, the higher required rate of return is usually paid on the stock

Q. The formula written as market risk premium divided by standard deviations of returns on market portfolio is used to calculate

Q. In capital asset pricing model, the investors assume that buying and selling activity will

Q. For the investors, the more steeper slope of indifference curve shows the more

Q. The positive minimum risk portfolio of any security shows that market security sold

Q. The third factor in the Fama French three factor model is the ratio which is classified as

Q. In capital asset pricing model, the assumptions must be followed including

Q. The two alternative expected returns are compared with the help of

Q. The dollar return is divided by invested amount which is used for calculating the

Q. An analysis of decision making of investors and managers is classified as

Q. The yield on bond is 7% and the market required return is 14% then market risk premium would be

Q. An expected rate of return is denoted by

Q. In expected future returns, the tighter probability distribution shows risk on given investment which is

Q. An inflation free rate of return and inflation premium are the two components of

Q. The risk affects any firm with the factors such as war, recessions, inflation and high interest rates is classified as

Q. The risk on a stock portfolio which cannot be eliminated or reduced by placing it in diversified portfolio is classified as

Recommended Subjects

Are you eager to expand your knowledge beyond Financial Management and Financial Markets? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!