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๐Ÿ’ฐFinance MCQs

Finance MCQs

500 MCQs
41

Difference between actual return on stock and predicted return is considered as___________?

AProbability error
BActual error
CPrediction error
DRandom error
42

Beta reflects stock risk for investors which is usually_________?

AIndividual
BCollective
CWeighted
DLinear
43

Future beta is needed to calculate in most situations is classified as____________?

AHistorical betas
BAdjusted betas
CStandard betas
DVaried betas
44

Money lends to corporations by banks is classified as___________?

AEurodollar market deposits
BCommercial loans
CConsumer credit loans
DConsumer credit loans
45

Market where market makers keep record of stock of financial instruments is classified as_________________?

AStock market
BDealer market
COutcry auction system
DFace to face communication
46

Transfer through institutions such as mutual funds or banks are classified as________________?

ANon-financial intermediary
BFinancial intermediary
CSavers intermediary
DDiscounted intermediary
47

Stock issued by company have lower rate of return because of___________?

AHigh market to book ratio
BLow book to market ratio
CLow market to book ratio
DHigh book to market ratio
48

In capital asset pricing model, assumptions must be followed including________?

ANo taxes
BNo transaction costs
CFixed quantities of assets
DAll of above
49

Type of relationship exists between an expected return and risk of portfolio is classified as___________?

ANon-linear
BLinear
CFixed and aggregate
DNon-fixed and non-aggregate
50

A theory which states that assets are traded at price equal to its intrinsic value is classified as___________________?

AEfficient money hypothesis
BEfficient market hypothesis
CInefficient market hypothesis
DInefficient money hypothesis
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