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Financial Management MCQs – Practice Test 8 (Chapter 8)

Portfolio Theory and Asset Pricing Models Notes Questions with Answers PDF Download – Test 8

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The "Portfolio Theory and Asset Pricing Models Notes" App Download: Stock portfolio with the lowest book for market ratios is considered as; MCQ with answers: b to m portfolio, s portfolio, h portfolio, and l portfolio. Practice Perpetuities Formula & Calculations Quiz Questions, download Kobo e-Book (Free Chapter) to strengthen finance understanding.

Portfolio Theory & Asset Pricing Models MCQs – Practice Test 8 PDF Download

MCQ 36: The stocks which has high book for market ratio are considered as:

  1. more risky
  2. less risky
  3. pessimistic
  4. optimistic

MCQ 37: The stock portfolio with the lowest book for market ratios is considered as:

  1. S portfolio
  2. B to M portfolio
  3. H portfolio
  4. L portfolio

MCQ 38: A measure which is not included in Fama French Three-Factor model is:

  1. realized risk free rate
  2. rate of return on market
  3. random error
  4. risk premium

MCQ 39: An average return of portfolio divided by its standard deviation is classified as:

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

MCQ 40: According to capital asset pricing model assumptions, the variances, expected returns and covariance of all assets are:

  1. identical
  2. not identical
  3. fixed
  4. variable

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