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 2 of 15

Q11.
The difference between actual return on stock and the predicted return is considered as
Discuss
Answer: (d).random error
Q12.
The complex statistical and mathematical theory is an approach, which is classified as
Discuss
Answer: (a).arbitrage pricing theory
Discuss
Answer: (a).set of attainable portfolios
Q14.
The tendency of people to blame failure on bad luck but given tribute of success to themselves is classified as
Discuss
Answer: (a).self attribution bias
Q15.
The stock portfolio with the highest book to market ratios is considered as
Discuss
Answer: (a).H portfolio
Q16.
The high portfolio return is 6.5% and the low portfolio return is 3.0% then the HML portfolio will be
Discuss
Answer: (c).0.035
Q17.
The stocks which has lower book for market ratio are considered as
Discuss
Answer: (c).less risky
Q18.
An individual stock required return is equal to risk free rate plus bearing risk premium is an explanation of
Discuss
Answer: (a).security market line
Q19.
The future beta is needed to calculate in most situations is classified as
Discuss
Answer: (a).historical betas
Q20.
An efficient set of portfolios represented through graph is classified as an
Discuss
Answer: (b).efficient frontier
Page 2 of 15