Financial Management - Study Mode
[#766] An amount invested is Rs 4000 and return is Rs 300 then rate of return will be
Correct Answer
(C) 7.50%
Explanation
Solution: Rate of return = Return / Amount invested = 300 / 4000 = 7.50%
[#767] In capital asset pricing model, stock with high standard deviation tend to have
Correct Answer
(B) low beta
Explanation
Solution: In capital asset pricing model, stock with high standard deviation tend to have low beta. the market. If a stock moves less than the market, the stock's beta is less than 1.0.
[#768] In asset portfolio, number of stocks are increased to
Correct Answer
(C) reduce risk
Explanation
Solution: In asset portfolio, number of stocks are increased to reduce risk. A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds.
[#769] Standard deviation is 18% and expected return is 15.5% then coefficient of variation would be
Correct Answer
(B) 1.16%
[#770] Standard deviation is divided by expected rate of return is used to calculate
Correct Answer
(A) coefficient of variation
Explanation
Solution: Standard deviation is divided by expected rate of return is used to calculate coefficient of variation. The coefficient of variation (CV) is a statistical measure of the dispersion of data points in a data series around the mean.