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 9 of 15

Q81.
The beta coefficient is used to measure market risk which is an index of
Discuss
Answer: (c).stock market volatility
Q82.
The standard deviation of tighter probability distribution is
Discuss
Answer: (d).smaller
Q83.
An opposite of perfect positive correlation + 1.0 is called
Discuss
Answer: (a).negative correlation
Q84.
A technique of lowering the risk for multinational companies and globally designed portfolios is classified as
Discuss
Answer: (c).global diversification
Q85.
The risk which is caused by events such as strikes, unsuccessful marketing programs and other lawsuits is classified as
Discuss
Answer: (c).diversifiable risk
Q86.
The required return is 11% and the premium for risk is 8% then the risk free return will be
Discuss
Answer: (a).0.03
Q87.
The range of probability distribution with 99.74% lies within
Discuss
Answer: (a).( + 3σ and -3σ)
Q88.
The risk per unit of return or the stand alone risk is represented by
Discuss
Answer: (c).coefficient of variation
Q89.
The risk on a stock portfolio which can be reduced by placing it in diversified portfolio is classified as
Discuss
Answer: (c).diversifiable risk
Q90.
An amount invested is $4000 and the dollar return is $300 then the rate of return will be
Discuss
Answer: (c).0.075