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

Related Mcqs:

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

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

2. Sum of market risk and diversifiable risk are classified as total risk which is equivalent to_______________?

   A. Sharpe’s alpha B. Standard alpha’s C. Alpha’s variance D. Variance...

3. In capital market line, risk of efficient portfolio is measured by its____________?

   A. Standard deviation B. Variance C. Aggregate risk D. Ineffective risk...

4. 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...

5. Positive minimum risk portfolio of any security shows that market security sold____________?

   A. Equal to original price B. Equal to sum of stocks C. Less than original price D. Greater than original price...

6. An effect of interest rate risk and investment risk on a bond’s yield is classified as_________?

   A. Reinvestment premium B. Investment risk premium C. Maturity risk premium D. Defaulter’s premium...

7. An unsystematic risk which can be eliminated but market risk is the__________?

   A. Aggregate risk B. Remaining risk C. Effective risk D. Ineffective risk...

8. According to market risk premium, an amount of risk premium depends upon investor______________?

   A. Risk taking B. Risk aversion C. Market aversion D. Portfolio aversion...

9. Current option price is added to present value of portfolio for calculating_________?

   A. Future value of portfolio B. Current value of stock C. Future value of stock D. Present value of portfolio...

10. Portfolio which consists of perfectly positive correlated assets having no effect of___________?

    A. Negativity B. Positivity C. Correlation D. Diversification...