Risk and Return MCQs MCQs 1-10 1. Which of the following is the variability of return on stocks or portfolios associated with changes in return on the market as a whole? (a) Systematic risk (b) Standard deviation (c) Unsystematic risk (d) Coefficient of variation Continue >> 2. An investment proposal should be judged and accepted? (a) A return equal to the return require by the investor (b) A return more than required by investor (c) A return less than required by investor (d) None of Above Continue >> 3. The conventional measure of dispersion is ________________________? (a) A probability distribution (b) The expected return (c) The standard deviation (d) Coefficient of variation Continue >> 4. The rate of return you earn on an investment before adjusting for inflation is called the ____________ rate? (a) Nominal (b) Real (c) Premium (d) Coupon Continue >> 5. The additional return we must expect to receive for assuming risk? (a) Risk discount (b) Risk premium (c) Par risk (d) Risk free rate of return Continue >> 6. The total risk is calculated by adding Unsystematic risk with ____________________? (a) Systematic risk (b) Market risk (c) Country specific risk (d) All of the above Continue >> 7. The single investment risk that investor would face if he or she held only one financial asset is called ________? (a) Stand alone risk (b) Portfolio risk (c) Diversifiable risk (d) Systematic risk Continue >> 8. If we multiply each possible outcome by its probability of occurrence and then sum these products than we get? (a) Variance (b) Expected Rate of Return (c) Standard Deviation (d) Co-efficient of Variation Continue >> 9. _______________ is a statistical measure of the variability of a distribution around its mean? (a) Variance (b) Expected rate of return (c) Standard deviation (d) Co-efficient of variation Continue >> 10. Of the following four investments, _____________________ is considered the safest? (a) Commercial paper (b) Corporate bonds (c) Treasury bonds (d) Treasury bills Continue >> PLAY AGAIN !