Capital Asset Pricing Model MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Capital Asset Pricing Model, a fundamental topic in the field of Financial Management and Financial Markets. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Capital Asset Pricing Model MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Capital Asset Pricing Model mcq questions that explore various aspects of Capital Asset Pricing Model problems. Each MCQ is crafted to challenge your understanding of Capital Asset Pricing Model principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace Financial Management and Financial Markets tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Capital Asset Pricing Model MCQs are your pathway to success in mastering this essential Financial Management and Financial Markets topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Capital Asset Pricing Model. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Capital Asset Pricing Model knowledge to the test? Let's get started with our carefully curated MCQs!

Capital Asset Pricing Model MCQs | Page 1 of 15

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Q1.
The beta reflects the stock risk for investors which is usually
Discuss
Answer: (a).individual
Q2.
For any or lower degree of risk, the highest or any expected return are the concepts use in
Discuss
Answer: (d).efficient portfolios
Q3.
An unsystematic risk which can be eliminated but the market risk is the
Discuss
Answer: (b).remaining risk
Q4.
An indication in a way that variance of y-variable is explained by x-variable which is shown as
Discuss
Answer: (a).degree of dispersion is one
Q5.
In regression of capital asset pricing model, an intercept of excess returns is classified as
Discuss
Answer: (c).Jensen's alpha
Q6.
In arbitrage pricing theory, the required returns are functioned of two factors which have
Discuss
Answer: (d).both a and b
Q7.
If the book value is greater than market value comparison with the investors for future stock are considered as
Discuss
Answer: (a).pessimistic
Q8.
An average return of portfolio divided by its coefficient of beta is classified as
Discuss
Answer: (b).treynor's reward to volatility ratio
Q9.
The slope coefficient of beta is classified statistically significant if its probability is
Discuss
Answer: (c).less than 5%
Q10.
The second factor in the Fama French three factor model is the
Discuss
Answer: (c).size of company