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 3 of 15

Discover more Topics under Financial Management and Financial Markets

Q21.
The rational traders immediately buy the stock when the price is
Discuss
Answer: (a).too low
Q22.
All the points lie on the line if the degree of dispersion is
Discuss
Answer: (b).one
Q23.
A high portfolio return is subtracted from low portfolio return to calculate
Discuss
Answer: (a).HML portfolio
Q24.
The second step in determining efficient portfolios is to consider efficient subset from the set of
Discuss
Answer: (a).attainable portfolios
Q25.
If the market value is greater than book value then the investors for future stock are considered as
Discuss
Answer: (d).optimistic
Q26.
According to capital asset pricing model assumptions, the investors will borrow unlimited amount of capital at any given
Discuss
Answer: (b).risk free rate of interest
Q27.
In calculation of betas, an adjusted betas are highly dependent on historical
Discuss
Answer: (a).unadjusted betas
Q28.
A curve which shows attitude towards risk just the way reflected in return trade-off function is classified as
Discuss
Answer: (b).indifference curve
Q29.
In capital market line, the risk of efficient portfolio is measured by its
Discuss
Answer: (a).standard deviation
Q30.
The formula written as 0.67(Historical Beta) + 0.35(1.0) is used to calculate
Discuss
Answer: (b).adjusted betas