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 11 of 15

Q101.
According to probability distribution of rates of return, a close outcome to an expected value is shown by
Discuss
Answer: (c).more peaked distribution
Q102.
A range of probability distribution with 95.46% lies within
Discuss
Answer: (b).( + 2σ and -2σ)
Q103.
The coefficient of variation is used to identify an effect of
Discuss
Answer: (d).both a and b
Q104.
In the portfolio, the beta of individual security in portfolio represented as their weighted average is classified as
Discuss
Answer: (b).beta of portfolio
Q105.
The coefficient of beta is used to measure stock volatility
Discuss
Answer: (b).relative to market
Q106.
The probability distribution is classified as normal if expected return lies between
Discuss
Answer: (a).( + 1 and -1)
Q107.
The greater chance of lower actual return than expected return and greater variation is indicated by
Discuss
Answer: (b).larger standard deviation
Q108.
The tendency of measuring correlation of two variables is classified as
Discuss
Answer: (c).correlation coefficient
Q109.
The size of the firm and the market or book ratio are variables which are related to
Discuss
Answer: (d).stock returns
Q110.
A model in which the behavior of asset returns is measured for set of risk factors and market risk is classified as
Discuss
Answer: (c).multifactor model