A. Country risk
B. Diversifiable risk
C. Equity risk premium
D. Market risk premium
Related Mcqs:
- 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 - The value of option issued to call debt is subtracted from rate of return on callable bond to calculate the rate of return on ____________?
A. contributed bonds
B. non-callable bonds
C. callable bonds
D. discounted bonds - 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 - Difference between actual return on stock and predicted return is considered as___________?
A. Probability error
B. Actual error
C. Prediction error
D. Random error - The marginal income tax rate is 35% and before tax rate of return is 12.5% then the after tax rate of return is __________?
A. 0.0613
B. 0.0713
C. 0.08125
D. 0.0913 - The marginal income tax rate is 46.8% and before tax rate of return is 15.5% then the after tax rate of return is _____________?
A. 0.0725
B. 0.08246
C. 0.1025
D. 0.0925 - The marginal income tax rate is 28% and before tax rate of return is 14.5% then the after tax rate of return is __________?
A. 0.0744
B. 0.0844
C. 0.0944
D. 0.1044 - Relationship between risk and required return is classified as___________?
A. Security market line
B. Required return line
C. Market risk line
D. Riskier return line - Real rate expected cash flows and nominal rate expected cash flows must be______________?
A. Accelerated
B. Equal
C. Different
D. Inflated - A high portfolio return is subtracted from low portfolio return to calculate_________?
A. HML portfolio
B. R portfolio
C. Subtracted portfolio
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