Arbitrage Pricing Theory MCQ (Multiple Choice Questions) PDF Download

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

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

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

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

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