Risk free rate is subtracted from expected market return is considered 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. The value of option issued to call debt is subtracted from rate of return on callable bond to calculate the rate of return on ____________?

   A. contributed bonds B. non-callable bonds C. callable bonds D. discounted bonds...

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

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

5. The marginal income tax rate is 35% and before tax rate of return is 12.5% then the after tax rate of return is __________?

   A. 0.0613 B. 0.0713 C. 0.08125 D. 0.0913...

6. The marginal income tax rate is 46.8% and before tax rate of return is 15.5% then the after tax rate of return is _____________?

   A. 0.0725 B. 0.08246 C. 0.1025 D. 0.0925...

7. The marginal income tax rate is 28% and before tax rate of return is 14.5% then the after tax rate of return is __________?

   A. 0.0744 B. 0.0844 C. 0.0944 D. 0.1044...

8. 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...

9. Real rate expected cash flows and nominal rate expected cash flows must be______________?

   A. Accelerated B. Equal C. Different D. Inflated...

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

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