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 7 of 15

Q61.
In capital asset pricing model, the investors assume that buying and selling activity will
Discuss
Answer: (b).not affect stock prices
Q62.
For the investors, the more steeper slope of indifference curve shows the more
Discuss
Answer: (a).risk averse investor
Q63.
The positive minimum risk portfolio of any security shows that market security sold
Discuss
Answer: (d).greater than original price
Q64.
The third factor in the Fama French three factor model is the ratio which is classified as
Discuss
Answer: (b).market to book ratio
Q65.
In capital asset pricing model, the assumptions must be followed including
Discuss
Answer: (d).all of the above
Q66.
The two alternative expected returns are compared with the help of
Discuss
Answer: (a).coefficient of variation
Q67.
The dollar return is divided by invested amount which is used for calculating the
Discuss
Answer: (a).rate of return
Q68.
An analysis of decision making of investors and managers is classified as
Discuss
Answer: (b).behavioral finance
Q69.
The yield on bond is 7% and the market required return is 14% then market risk premium would be
Discuss
Answer: (d).0.07
Q70.
An expected rate of return is denoted by
Discuss
Answer: (c).r-hat