Relationship between risk and required return is classified as___________?

Related Mcqs:

1. 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...

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

   A. Probability error B. Actual error C. Prediction error D. Random error...

3. 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...

4. 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...

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

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

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. Required rate of return in calculating bond’s cash flow is also classified as_______?

   A. Going rate of return B. Yield C. Earning rate D. Both A and B...

10. Rate of return which is required to satisfy stockholders and debt holders is classified as__________?

    A. Weighted average cost of interest B. Weighted average cost of capital C. Weighted average salvage value D. Mean cost of capital...