Portfolio Management

Chapter 9 ASSET PRICING MODELS Multiple Choice Questions not bad(p) mart Theory 1. The Capital Asset Pricing exercise: a. has serious flaws because of its complexity. b. measures germane(predicate) fortune of a security and shows the relationship amongst risk and expected return. c. was developed by Markowitz in the 1930s. d. discounts approximately only of the Markowitz portfolio theory. (b, moderate) 2.Which of the followers is not one of the assumptions of the CMT? a. All investors make water the alike(p) one-period time horizon. b. in that location are no individualised income taxes. c. in that respect is no interest rate aerated on borrowing. d. There are no transaction costs. (c, moderate) 3.Which of the following is an assumption of the CMT? a. sensation investors can affect the market by their buying and merchandising decisions. b. There is no inflation. c. Investors prefer crown gains over dividends. d. polar investors have different probability distributions.. (b, moderate) 4.Which of the following regarding investors and the CMT is true? a.

Investors fuck that each the assumptions of the CMT are unrealistic. b. Investors experience that all of the CMT assumptions are not unrealistic. c. Investors are not aware of the assumptions of the CMT model. d. Investors recognize the CMT is useless for psyche investors. ! (b, moderate) 5.The _______ is typically taken to be the safe rate. a. savings account b. documentation of deposit c. Treasury board d. Treasury bond (c, easy) 6.What does it mean when the CAPM is called robust? a. The CAPM requires no assumptions. b. veritable(a) if most of the assumptions of the CAPM are relaxed, most of the...If you want to get a full essay, order it on our website: OrderEssay.net

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