Calculating Beta Coefficient Multiple Choice Questions with Answers – PDF Download

MCQ 1: An indication in a way that variance of y-variable is explained by x-variable which is shown as:

1. degree of dispersion is one
2. degree of dispersion is two
3. degree of dispersion is three
4. degree of dispersion is four

MCQ 2: In regression of capital asset pricing model, an intercept of excess returns is classified as:

1. Sharpe's reward to variability ratio
2. Tenor's reward to volatility ratio
3. Jensen's alpha
4. Tenor's variance to volatility ratio

MCQ 3: An average return of portfolio divided by its coefficient of beta is classified as:

1. Sharpe's reward to variability ratio
2. treynor's reward to volatility ratio
3. Jensen's alpha
4. treynor's variance to volatility ratio

MCQ 4: The difference between actual return on stock and the predicted return is considered as:

1. probability error
2. actual error
3. prediction error
4. random error

MCQ 5: The future beta is needed to calculate in most situations is classified as:

1. historical betas
2. adjusted betas
3. standard betas
4. varied betas