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 10 of 15

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Q91.
In capital asset pricing model, the stock with the high standard deviation tend to have
Discuss
Answer: (b).low beta
Q92.
In the asset portfolio, the number of stocks are increased to
Discuss
Answer: (c).reduce risk
Q93.
The standard deviation is 18% and the expected return is 15.5% then the coefficient of variation would be
Discuss
Answer: (b).0.01161
Q94.
The standard deviation is divided by the expected rate of return is used to calculate
Discuss
Answer: (a).coefficient of variation
Q95.
If the stock has a great risk related to it then a required return is
Discuss
Answer: (a).higher
Q96.
An amount invested is $2000 and the dollar return is $200 then the rate of return would be
Discuss
Answer: (b).0.1
Q97.
A risk which is classified as its contribution to risk of portfolio is classified as
Discuss
Answer: (d).relevant risk
Q98.
The chance of happening any unfavorable event in near future is classified as
Discuss
Answer: (d).risk
Q99.
A tighter probability distribution shows the
Discuss
Answer: (b).lower risk
Q100.
The stock which has higher correlation with market tend to have
Discuss
Answer: (c).high beta, more risky