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 8 of 15

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Q71.
In expected future returns, the tighter probability distribution shows risk on given investment which is
Discuss
Answer: (a).smaller
Q72.
An inflation free rate of return and inflation premium are the two components of
Discuss
Answer: (a).quoted rate
Q73.
The risk affects any firm with the factors such as war, recessions, inflation and high interest rates is classified as
Discuss
Answer: (b).market risk
Q74.
The risk on a stock portfolio which cannot be eliminated or reduced by placing it in diversified portfolio is classified as
Discuss
Answer: (b).market risk
Q75.
In investment returns, a received amount is subtracted from an invested amount which is used to calculate
Discuss
Answer: (b).dollar return
Q76.
The past realized rate of return in period t is denoted by
Discuss
Answer: (d).r bar t
Q77.
An amount invested is $1500 and an amount received is $2000 then the dollar return would be
Discuss
Answer: (a).500
Q78.
The external factors such as expiration of basic patents and industry competition effect
Discuss
Answer: (c).company's beta
Q79.
The type of risk in which beta is equal to one is classified as
Discuss
Answer: (d).average risk stock
Q80.
A portfolio consists of all the stocks in a market is classified as
Discuss
Answer: (a).market portfolio