Investments 9Th Canadian Edition By Bodie-Test Bank

Test Bank For Investments 9Th Canadian Edition By Bodie

ISBN-10:053845217X , ISBN-13:978-0538452175

Chapter 09

The Capital Asset Pricing Mannequin

A number of Selection Questions
1. Within the context of the Capital Asset Pricing Mannequin (CAPM), the related measure of danger is
A. distinctive danger.
B. beta.
C. commonplace deviation of returns.
D. variance of returns.

Accessibility: Keyboard Navigation
Blooms: Bear in mind
Problem: Simple
Studying Goal: 09-01 The Capital Asset Pricing Mannequin.
Matter: 09-01 The Capital Asset Pricing Mannequin

2. Within the context of the Capital Asset Pricing Mannequin (CAPM), the related danger is
A. distinctive danger.
B. systematic danger.
C. commonplace deviation of returns.
D. variance of returns.

Accessibility: Keyboard Navigation
Blooms: Bear in mind
Problem: Simple
Studying Goal: 09-01 The Capital Asset Pricing Mannequin.
Matter: 09-01 The Capital Asset Pricing Mannequin

3. Within the context of the Capital Asset Pricing Mannequin (CAPM), the related danger is
A. distinctive danger.
B. market danger.
C. commonplace deviation of returns.
D. variance of returns.

Accessibility: Keyboard Navigation
Blooms: Bear in mind
Problem: Simple
Studying Goal: 09-01 The Capital Asset Pricing Mannequin.
Matter: 09-01 The Capital Asset Pricing Mannequin

4. In keeping with the Capital Asset Pricing Mannequin (CAPM), a properly diversified portfolio’s price of return is a perform of
A. market danger.
B. unsystematic danger.
C. distinctive danger.
D. reinvestment danger.
E. Not one of the choices are appropriate.

Accessibility: Keyboard Navigation
Blooms: Bear in mind
Problem: Simple
Studying Goal: 09-01 The Capital Asset Pricing Mannequin.
Matter: 09-01 The Capital Asset Pricing Mannequin

5. In keeping with the Capital Asset Pricing Mannequin (CAPM), a properly diversified portfolio’s price of return is a perform of
A. beta danger.
B. unsystematic danger.
C. distinctive danger.
D. reinvestment danger.
E. Not one of the choices are appropriate.

Accessibility: Keyboard Navigation
Blooms: Bear in mind
Problem: Simple
Studying Goal: 09-01 The Capital Asset Pricing Mannequin.
Matter: 09-01 The Capital Asset Pricing Mannequin

6. In keeping with the Capital Asset Pricing Mannequin (CAPM), a properly diversified portfolio’s price of return is a perform of
A. systematic danger.
B. unsystematic danger.
C. distinctive danger.
D. reinvestment danger.

Accessibility: Keyboard Navigation
Blooms: Bear in mind
Problem: Simple
Studying Goal: 09-01 The Capital Asset Pricing Mannequin.
Matter: 09-01 The Capital Asset Pricing Mannequin

7. The market portfolio has a beta of
A. 0.
B. 1.
C. -1.
D. 0.5.

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Blooms: Bear in mind
Problem: Simple
Studying Goal: 09-01 The Capital Asset Pricing Mannequin.
Matter: 09-01 The Capital Asset Pricing Mannequin

8. The chance-free price and the anticipated market price of return are 0.06 and 0.12, respectively. In keeping with the capital asset pricing mannequin (CAPM), the anticipated price of return on safety X with a beta of 1.2 is the same as
A. 0.06.
B. 0.144.
C. 0.12.
D. 0.132.
E. 0.18.

Accessibility: Keyboard Navigation
Blooms: Apply
Problem: Simple
Studying Goal: 09-01 The Capital Asset Pricing Mannequin.
Matter: 09-01 The Capital Asset Pricing Mannequin

9. The chance-free price and the anticipated market price of return are 0.056 and 0.125, respectively. In keeping with the capital asset pricing mannequin (CAPM), the anticipated price of return on a safety with a beta of 1.25 is the same as
A. 0.142.
B. 0.144.
C. 0.153.
D. 0.134.
E. 0.117.

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Blooms: Apply
Problem: Simple
Studying Goal: 09-01 The Capital Asset Pricing Mannequin.
Matter: 09-01 The Capital Asset Pricing Mannequin

10. Which assertion is just not true concerning the market portfolio?
A. It consists of all publicly-traded monetary belongings.
B. It lies on the environment friendly frontier.
C. All securities out there portfolio are held in proportion to their market values.
D. It’s the tangency level between the capital market line and the indifference curve.
E. The entire choices are true.

Accessibility: Keyboard Navigation
Blooms: Bear in mind
Problem: Medium
Studying Goal: 09-01 The Capital Asset Pricing Mannequin.
Matter: 09-01 The Capital Asset Pricing Mannequin