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
Stock issued by company have lower rate of return because of:
A. High market to book ratio
B. Low book to market ratio
C. Low market to book ratio
D. High book to market ratio
In capital asset pricing model, assumptions must be followed including:
A. No taxes
B. No transaction costs
C. Fixed quantities of assets
D. All of above
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
A theory which states that assets are traded at price equal to its intrinsic value is classified as:
A. Efficient money hypothesis
B. Efficient market hypothesis
C. Inefficient market hypothesis
D. Inefficient money hypothesis
In capital asset pricing model, characteristic line is classified as:
A. Regression line
B. Probability line
C. Scattered points
D. Weighted line
Betas tend to move towards 1.0 with passage of time are classified as:
A. Standard betas
B. Varied betas
C. Historical betas
D. Adjusted betas
All assets are perfectly divisible and liquid in:
A. Tax free pricing model
B. Cost free pricing model
C. Capital asset pricing model
D. Stock pricing model
Stock issued by company have higher rate of return because of:
A. Low market to book ratio
B. High book to market ratio
C. High market to book ratio
D. Low book to market ratio
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
