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 13 of 15

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Q121.
The Treasury yielded by bond is 7% and the market required return is 13% then market risk premium will be
Discuss
Answer: (c).0.06
Q122.
The chance of occurrence of any event is classified as
Discuss
Answer: (a).probability
Q123.
According to market risk premium, an amount of risk premium depends upon the investor
Discuss
Answer: (b).risk aversion
Q124.
When the changes in patents and industry competition occur, the required rate of return
Discuss
Answer: (b).does not change
Q125.
In an individual stock, the relevant risk is classified as
Discuss
Answer: (b).beta coefficient
Q126.
The type of premium asked by the investors for bearing the risk on average stock is classified as
Discuss
Answer: (b).market risk premium
Q127.
The portfolio which consists of perfectly positive correlated assets having no effect of
Discuss
Answer: (d).diversification
Q128.
The weighted average of the probabilities is classified as
Discuss
Answer: (b).expected rate of return
Q129.
The market risk and diversifiable risk are two components of
Discuss
Answer: (a).stock's risk
Q130.
The market risk premium is 8% and the risk free return is 7% then the market required return would be
Discuss
Answer: (a).0.15