Stand Alone Risks Multiple Choice Questions (MCQ) PDF Download

MCQ 1: The standard deviation of tighter probability distribution is

1. long-termed
2. short-termed
3. riskier
4. smaller

MCQ 2: The range of probability distribution with 99.74% lies within

1. ( + 3σ and -3σ)
2. ( + 4σ and -4σ)
3. ( + 1σ and -1σ)
4. ( + 2σ and -2σ)

MCQ 3: The standard deviation is 18% and the expected return is 15.5% then the coefficient of variation would be

1. 0.00861
2. 0.01161
3. 0.025
4. −2.5%

MCQ 4: The standard deviation is divided by the expected rate of return is used to calculate

1. coefficient of variation
2. coefficient of deviation
3. coefficient of standard
4. coefficient of return

MCQ 5: According to probability distribution of rates of return, a close outcome to an expected value is shown by

1. value distribution
2. expected distribution
3. more peaked distribution
4. less peaked distribution