In capital asset pricing model, assumptions must be followed including________?

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, 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. In weighted average cost of capital, capital components are funds that usually offer by____________?

   A. Stock market
   B. Investors
   C. Capitalist
   D. Exchange index

8. In weighted average capital, capital structure weights estimation does not rely on value of__________?

   A. Investors equity
   B. Market value of equity
   C. Book value of equity
   D. Stock equity

9. Cash flows that could be generated from an owned asset by company but not use in project are classified as_________________?

   A. Occurred cost
   B. Mean cost
   C. Opportunity costs
   D. Weighted cost

10. Mostly in financials, risk of portfolio is smaller than that of asset’s________?

    A. Mean
    B. Weighted average
    C. Mean correlation
    D. Negative correlation