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 14 of 15

Q131.
The range of probability distribution with 68.26% lies within
Discuss
Answer: (c).( + 1σ and -1σ)
Q132.
In capital asset pricing model, an amount of risk that stock contributes to the portfolio of market is classified as
Discuss
Answer: (d).beta coefficient
Q133.
The case in which average investors risk aversion is greater then the slope of line and risk premium respectively is
Discuss
Answer: (a).steeper, greater
Q134.
The expected returns weighted average on assets in the portfolio is considered as
Discuss
Answer: (b).expected return on portfolio
Q135.
The correct measure of risk of stock is called
Discuss
Answer: (b).beta
Q136.
The standard deviation is 18% and the coefficient of variation is 1.5% an expected rate of return will be
Discuss
Answer: (c).0.195
Q137.
An amount invested is $2500 and an amount received is $1500 then the dollar return will be
Discuss
Answer: (c).−$1000
Q138.
An additional desired compensation by investors for assuming an additional risk on investment is classified as
Discuss
Answer: (a).risk premium
Q139.
The method and model used to analyze the relationship between rates of return and risk is classified as
Discuss
Answer: (a).capital asset pricing model
Q140.
The stocks in the market portfolio are graphically represented with
Discuss
Answer: (a).dashed line