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 6 of 15

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Q51.
The gross domestic product, the world economy strength and level of inflation are the factors which is used to determine
Discuss
Answer: (a).market realized return
Q52.
The rational traders immediately sell the stock when the price is
Discuss
Answer: (d).too high
Q53.
The stock issued by company have lower rate of return because of
Discuss
Answer: (b).low book to market ratio
Q54.
The riskless rate in addition with risk premium is multiplied by standard deviation of portfolio for using to calculate expected return rate on
Discuss
Answer: (a).efficient portfolio
Q55.
The realized and required return for individual stocks are classified as function of fundamental
Discuss
Answer: (b).economic factors
Q56.
The first factor in the Fama French three factor model is
Discuss
Answer: (a).CAPM stock beta
Q57.
A line which shows the relationship between an expected return and risk on efficient portfolio is considered as
Discuss
Answer: (c).capital market line
Q58.
The relationship between total risk of stock, diversifiable risk and market risk is classified as
Discuss
Answer: (a).total risk
Q59.
In arbitrage pricing theory, the higher required rate of return is usually paid on the stock
Discuss
Answer: (b).higher dividend
Q60.
The formula written as market risk premium divided by standard deviations of returns on market portfolio is used to calculate
Discuss
Answer: (a).capital market line