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Risk and Rates of Return on Investment Multiple Choice Questions with Answers – PDF Download

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Free "Risk and Rates of Return on Investment MCQ" App Download with MCQ: Yield on bond is 7% and the market required return is 14% then market risk premium would be; with answers: 0.02, 0.21, 0.005, and 0.07 for finance undergraduate studies. Practice Risk and Rates of Return on Investment Quiz Questions, download Apple Book (Free Chapter) to benefit finance web learning.

Risk and Rates of Return on Investment MCQs PDF Download – Prep Test

MCQ 1: The yield on bond is 7% and the market required return is 14% then market risk premium would be:

  1. 0.02
  2. 0.21
  3. 0.005
  4. 0.07

MCQ 2: The external factors such as expiration of basic patents and industry competition effect:

  1. patents premium
  2. competition premium
  3. company's beta
  4. expiry premium

MCQ 3: Of all the stocks in a portfolio, the required rate of return is classified as:

  1. return portfolio
  2. in volatile portfolio
  3. volatile portfolio
  4. market portfolio

MCQ 4: The type of premium asked by the investors for bearing the risk on average stock is classified as:

  1. average premium
  2. market risk premium
  3. stock premium
  4. buying discount

MCQ 5: The market risk premium is 8% and the risk free return is 7% then the market required return would be:

  1. 0.15
  2. 0.01
  3. 56
  4. 0.01142

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