Difference between actual return on stock and predicted return is considered as___________?

Related Mcqs:

1. 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...

2. 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...

3. 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...

4. 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...

5. In an individual stock, relevant risk is classified as___________?

   A. Alpha coefficient B. Beta coefficient C. Stand-alone coefficient D. Relevant coefficient...

6. 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...

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. A high portfolio return is subtracted from low portfolio return to calculate_________?

   A. HML portfolio B. R portfolio C. Subtracted portfolio...

9. 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%...

10. 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...