In capital asset pricing model, stock with high standard deviation tend to have________?

Related Mcqs:

1. According to capital asset pricing model assumptions, investors will borrow unlimited amount of capital at any given___________?

   A. Identical and fixed returns
   B. Risk free rate of interest
   C. Fixed rate of interest
   D. Risk free expected return

2. 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

3. 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

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

   A. Regression line
   B. Probability line
   C. Scattered points
   D. Weighted line

5. 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

6. The Capital Asset Pricing Model calculate expected:

   A. Risk
   B. Risk and Return
   C. Return
   D. None of the above

   Submitted by: Irsa Atta

7. If we were studying a sample of 100 students and their examination performance and if the standard deviation of the list of results was say 14, then we could calculated the standard error by ___________?

   A. Dividing the square root of the number of items in the sample by the mean
   B. Dividing standard deviation by number of items in the sample
   C. Dividing the standard deviation by the square root of the number of items in the sample
   D. We cannot calculate standard error on account of inadequacy of information

8. Standard deviation of tighter probability distribution is____________?

   A. Long-termed
   B. Short-termed
   C. Riskier
   D. Smaller

9. Standard deviation is 18% and coefficient of variation is 1.5% an expected rate of return will be_____________?

   A. 27%
   B. 12%
   C. 19.50%
   D. none of above

   Updated by: Mansoor Ahmad

10. Standard deviation is 18% and expected return is 15.5% then coefficient of variation would be__________?

    A. 0.86%
    B. 1.16%
    C. 2.50%
    D.−2.5%