Finance Mcqs

Stocks which has lower book for market ratio are considered as__________?

(A) Optimistic

(B) More risky

(C) Less risky

(D) Pessimistic

Submitted By: Ali Uppal


An unsystematic risk which can be eliminated but market risk is the__________?

(A) Aggregate risk

(B) Remaining risk

(C) Effective risk

(D) Ineffective risk

Submitted By: Ali Uppal


Submitted By: Ali Uppal


Difference between actual return on stock and predicted return is considered as___________?

(A) Probability error

(B) Actual error

(C) Prediction error

(D) Random error

Submitted By: Ali Uppal


Stock issued by company have lower rate of return because of___________?

(A) High market to book ratio

(B) Low book to market ratio

(C) Low market to book ratio

(D) High book to market ratio

Submitted By: Ali Uppal


In capital asset pricing model, assumptions must be followed including________?

(A) No taxes

(B) No transaction costs

(C) Fixed quantities of assets

(D) All of above

Submitted By: Ali Uppal


Type of relationship exists between an expected return and risk of portfolio is classified as___________?

(A) Non-linear

(B) Linear

(C) Fixed and aggregate

(D) Non-fixed and non-aggregate

Submitted By: Ali Uppal


A theory which states that assets are traded at price equal to its intrinsic value is classified as___________________?

(A) Efficient money hypothesis

(B) Efficient market hypothesis

(C) Inefficient market hypothesis

(D) Inefficient money hypothesis

Submitted By: Ali Uppal


In capital asset pricing model, characteristic line is classified as____________?

(A) Regression line

(B) Probability line

(C) Scattered points

(D) Weighted line

Submitted By: Ali Uppal


Betas tend to move towards 1.0 with passage of time are classified as__________?

(A) Standard betas

(B) Varied betas

(C) Historical betas

(D) Adjusted betas

Submitted By: Ali Uppal