Financial Management MCQs (BBA Finance) From Textbook

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Financial Management Exam MCQs – Practice Test 4 (Chapter 9)

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Risk, Return, & Capital Asset Pricing Model MCQs – Practice Test 4 PDF Download

MCQ: 16

The beta coefficient is used to measure market risk which is an index of

  1. coefficient risk volatility
  2. market risk volatility
  3. stock market volatility
  4. portfolio market portfolio
MCQ: 17

The standard deviation of tighter probability distribution is

  1. long-termed
  2. short-termed
  3. riskier
  4. smaller
MCQ: 18

An opposite of perfect positive correlation + 1.0 is called

  1. negative correlation
  2. multiple correlation
  3. divisor correlation
  4. none of above
MCQ: 19

A technique of lowering the risk for multinational companies and globally designed portfolios is classified as

  1. national diversification
  2. behavioral diversification
  3. global diversification
  4. behavioral finance
MCQ: 20

The risk which is caused by events such as strikes, unsuccessful marketing programs and other lawsuits is classified as

  1. stock risk
  2. portfolio risk
  3. diversifiable risk
  4. market risk

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