Stand Alone Risks Multiple Choice Questions with Answers – 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