According to capital asset pricing model assumptions, quantities of all assets are______________?

Related Mcqs:

1. 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

2. 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

3. 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

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, stock with high standard deviation tend to have________?

   A. Low variation
   B. Low beta
   C. High beta
   D. High variation

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. Return on assets = 5.5%, Total assets $3,000 and common equity $1,050 then return on equity would be_________?

   A. $22,275
   B. 15.71%
   C. 1.93%
   D. 1.925 times

8. Net income available to stockholders is $150 and total assets are $2,100 then return on total assets would be_________?

   A. 0.07%
   B. 7.14%
   C. 0.05 times
   D. 7.15 times

9. The profit margin = 4.5%, assets turnover = 2.2 times, equity multiplier = 2.7 times then return on assets will be __________?

   A. 0.2673
   B. 26.73 times
   C. 0.094
   D. 0.4 times

10. If the profit margin is equal to 4.5% and the total assets turnover is 1.8% then the return on assets DuPont equation would be _________?

    A. 0.025
    B. 0.081
    C. 0.004
    D. 4 times