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 5 of 15

Q41.
The sum of market risk and diversifiable risk are classified as total risk which is equivalent to
Discuss
Answer: (d).variance
Q42.
The betas tend to move towards 1.0 with the passage of time are classified as
Discuss
Answer: (d).adjusted betas
Q43.
The stock issued by company have higher rate of return because of
Discuss
Answer: (b).high book to market ratio
Q44.
The betas that are constantly adjusted to reflect changes in capital structure and firms operations are classified as
Discuss
Answer: (c).fundamental betas
Q45.
The type of relationship exists between an expected return and risk of portfolio is classified as
Discuss
Answer: (b).linear
Q46.
The capital market line reflects an attitude of investors towards risk which is considered as an/a
Discuss
Answer: (d).aggregate
Q47.
A theory which states that the assets are traded at the price equal to its intrinsic value is classified as
Discuss
Answer: (b).efficient market hypothesis
Q48.
In capital asset pricing model, the characteristic line is classified as
Discuss
Answer: (a).regression line
Q49.
All the assets are perfectly divisible and liquid in
Discuss
Answer: (c).capital asset pricing model
Q50.
The relationship between risk free asset and a single risky asset are always
Discuss
Answer: (a).linear
Page 5 of 15