Top 350+ Solved Security Analysis and Investment Management MCQ Questions Answer
Q. The market risk premium is the slope of:
a. the efficient frontier.
b. the capital market line.
c. the security market line.
d. the characteristic line.
Q. According to the CAPM, overpriced securities have:
a. negative betas.
b. positive alphas.
c. negative alphas.
d. zero betas.
Q. Capital asset pricing theory asserts that portfolio returns are best explained by:
a. specific risk.
b. systematic risk.
c. economic factors.
d. diversification.
Q. According to security market line, the expected return of any security is a function of:
a. diversifiable risk.
b. total risk.
c. systematic risk.
d. unsystematic risk.
Q. According to the capital market line, the expected return of any efficient portfolio is afunction of:
a. unique risk.
b. systematic risk.
c. unsystematic risk.
d. total risk.
Q. Which one of the following is the exponential factor for a 100-day Exponential Moving Average?
a. 0.01
b. 0.2
c. 0.02
d. 0.002
Q. Which of the following patterns is the most reliable and widely used for indicating trend reversal?
a. Stochastics
b. Moving Averages
c. Rectangles
d. Head and Shoulders
Q. In the context of the Capital Asset Pricing Model (CAPM) the relevant measure of risk is
a. unique risk.
b. beta.
c. standard deviation of returns.
d. variance of returns.
Q. According to the Capital Asset Pricing Model (CAPM) a well diversified portfolio'srate of return is a function of
a. market risk
b. unsystematic risk
c. unique risk.
d. reinvestment risk.
Q. Which statement is not true regarding the Capital Market Line (CML)?
a. The CML is the line from the risk-free rate through the market portfolio.
b. The CML is the best attainable capital allocation line.
c. The CML is also called the security market line.
d. The CML always has a positive slope.
Q. Which statement is true regarding the Capital Market Line (CML)?
a. The CML is the line from the risk-free rate through the market portfolio.
b. The CML is the best attainable capital allocation line.
c. The CML always has a positive slope.
d. A, B, and C are true.