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 4 of 15

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Q31.
A model which regresses the return of stock against the return of market is classified as
Discuss
Answer: (b).market model
Q32.
According to capital asset pricing model assumptions, the quantities of all the assets are
Discuss
Answer: (a).given and fixed
Q33.
According to Fama French Three-Factor model, the market value of company equity is used to calculate
Discuss
Answer: (d).size of company
Q34.
The negative minimum risk portfolio of any security shows that market security sold
Discuss
Answer: (a).less than original price
Q35.
In capital asset pricing model, the covariance between stock and the market is divided by variance of market returns is used to calculate
Discuss
Answer: (c).beta coefficient of company
Q36.
The stocks which has high book for market ratio are considered as
Discuss
Answer: (a).more risky
Q37.
The stock portfolio with the lowest book for market ratios is considered as
Discuss
Answer: (d).L portfolio
Q38.
A measure which is not included in Fama French Three-Factor model is
Discuss
Answer: (d).risk premium
Q39.
An average return of portfolio divided by its standard deviation is classified as
Discuss
Answer: (c).Sharpe's reward to variability ratio
Q40.
According to capital asset pricing model assumptions, the variances, expected returns and covariance of all assets are
Discuss
Answer: (a).identical