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Modern Portfolio Theory emphasis that asset in portfolio shall be selected on the basis of:
Modern Portfolio theory supports —– as a risk mitigating tool.
Investors prefer the —– level of risk, and for a given level of risk, want the —- possible return.
There are limited number of combination occur that maximize return for a given risk level. If we plot such optimal risk return combination we will get—
The point where and indifference curve intersect efficient frontier represent —-
CAPM model help to determine —– from any risky asset.
Calculate the beta of the stock, if correlation between stock and market is 0.45 and standard deviation of market is 12% and stock is 18%.
Calculate the required rate of return from portfolio if beta of portfolio is 1.25 and risk free rate is 6% and market return 12%?
What is the formula for capital asset pricing model?
—-refer to taking advantage of any opportunities created by mispricing of securities, thereby creating equilibrium.
If EMH is true then it would be most logical to invest in which type of funds?
What does Modern Portfolio Theory (MPT) identify as the two factors, under certain conditions, that should be balanced when an individual determines investment choices?
What is the most accurate description of what portfolios on the Efficient Frontier represent?
What does the capital market line (CML) show?
An ‘efficient portfolio’ is one that offers the highest possible expected return:
Which one of the following Efficient Market Hypothesis (EMH) forms is most likely based on the belief that all public information is already fully incorporated into the price of a security?
Which one of the following Efficient Market Hypothesis (EMH) forms is most likely based on the belief that all public and nonpublic information is already fully incorporated into the price of a security?
Which one of the following Efficient Market Hypothesis (EMH) forms is most likely based on the belief that all available (current and historical) stock market information is already fully incorporated into the price of a security?
Which one of the following sentences is most likely reflective of the “weak form” of the efficient market hypothesis (EMH)?
Beta is a measure of —- risk
If the stock forecast return is greater than required return stock —- valued—
If EMH is true than can an investor take advantage of market timing?
If EMH is true an analyst cannot take decision on the basis of analyzing the past price and volume data of a stock as it will have no impact on future direction of stock price.
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