A. Probability error
B. Actual error
C. Prediction error
D. Random error
Related Mcqs:
- A stock which is hybrid and works as a cross between debt and common stock is considered as_______________?
A. Hybrid stock
B. Common liabilities
C. Debt liabilities
D. Preferred stock - Risk free rate is subtracted from expected market return is considered as___________?
A. Country risk
B. Diversifiable risk
C. Equity risk premium
D. Market risk premium - 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 - 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 - In an individual stock, relevant risk is classified as___________?
A. Alpha coefficient
B. Beta coefficient
C. Stand-alone coefficient
D. Relevant coefficient - Modified rate of return and modified internal rate of return with exceed cost of capital if net present value is____________?
A. Positive
B. Negative
C. Zero
D. One - 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 - A high portfolio return is subtracted from low portfolio return to calculate_________?
A. HML portfolio
B. R portfolio
C. Subtracted portfolio - Return on assets = 6.7% and equity multiplier = 2.5% then return on equity will be ______________?
A. 16.75%
B. 2.68%
C. 0.37%
D. 9.20% - 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
