All assets are perfectly divisible and liquid in___________?
(A) Tax free pricing model
(B) Cost free pricing model
(C) Capital asset pricing model
(D) Stock pricing model
Stock issued by company have higher rate of return because of______________?
(A) Low market to book ratio
(B) High book to market ratio
(C) High market to book ratio
(D) Low book to market ratio
According to capital asset pricing model assumptions, variances, expected returns and co-variance of all assets are__________?
(A) Identical
(B) Not identical
(C) Fixed
(D) Variable
According to capital asset pricing model assumptions, quantities of all assets are______________?
(A) Given and fixed
(B) Not given and fixed
(C) Not given and variable
(D) Given and variable
Beta coefficient is used to measure market risk which is an index of__________?
(A) Coefficient risk volatility
(B) Market risk volatility
(C) Stock market volatility
(D) Portfolio market portfolio
External factors such as expiration of basic patents and industry competition effect____________?
(A) Patents premium
(B) Competition premium
(C) Company’s beta
(D) Expiry premium
Type of risk in which beta is equal to one is classified as____________?
(A) Multiple risk stock
(B) Varied risk stock
(C) Total risk stock
(D) Average risk stock
Standard deviation of tighter probability distribution is____________?
(A) Long-termed
(B) Short-termed
(C) Riskier
(D) Smaller
Sum of market risk and diversifiable risk are classified as total risk which is equivalent to_______________?
(A) Sharpe’s alpha
(B) Standard alpha’s
(C) Alpha’s variance
(D) Variance
Two alternative expected returns are compared with help of__________?
(A) Coefficient of variation
(B) Coefficient of deviation
(C) Coefficient of standard
(D) Coefficient of return