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Relationship between Risk and Rates of Return Multiple Choice Questions with Answers – PDF Download

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Free "Relationship between Risk and Rates of Return Study" App with MCQ: An inflation free rate of return and inflation premium are the two components of; with answers: quoted rate, unquoted rate, steeper rate, and portfolio rate. Practice Relationship between Risk and Rates of Return Quiz Questions, download Google e-Book (Free Chapter) to enhance economic understanding.

Relationship between Risk and Rates of Return MCQs PDF Download – Prep Test

MCQ 1: An inflation free rate of return and inflation premium are the two components of:

  1. quoted rate
  2. unquoted rate
  3. steeper rate
  4. portfolio rate

MCQ 2: The required return is 11% and the premium for risk is 8% then the risk free return will be:

  1. 0.03
  2. 0.19
  3. 0.0072
  4. 0.01375

MCQ 3: The relationship between risk and required return is classified as:

  1. security market line
  2. required return line
  3. market risk line
  4. riskier return line

MCQ 4: The required return is 15% and the premium for risk is 11% then the risk free return would be:

  1. 0.26
  2. 0.04
  3. 165
  4. 0.0136

MCQ 5: The market required return is subtracted from the risk free rate which is used to calculate:

  1. quoted risk premium
  2. market risk premium
  3. portfolio risk premium
  4. unquoted risk premium

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