Arbitrage Pricing Theory Multiple Choice Questions with Answers – PDF Download

MCQ 1: In arbitrage pricing theory, the required returns are functioned of two factors which have:

1. dividend policy
2. market risk
3. historical policy
4. Both A and B

MCQ 2: The complex statistical and mathematical theory is an approach, which is classified as:

1. arbitrage pricing theory
2. arbitrage risk theory
3. arbitrage dividend theory
4. arbitrage market theory

MCQ 3: The gross domestic product, the world economy strength and level of inflation are the factors which is used to determine:

1. market realized return
2. portfolio realized return
3. portfolio arbitrage risk
4. arbitrage theory of return

MCQ 4: The realized and required return for individual stocks are classified as function of fundamental:

1. arbitrage factors
2. economic factors
3. portfolio factors
4. realized theory factors

MCQ 5: In arbitrage pricing theory, the higher required rate of return is usually paid on the stock:

1. higher market risk
2. higher dividend
3. lower dividend
4. lower market risk