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