1. Dow Jones is stock exchange market of__________?
✅ C. New York
Option A : Tokyo Option B : London Option C : New York Option D : None of these Option E : Correct Answer : New York Read more
Finance MCQs
Finance MCQs Test Preparation | Latest 2025 Quiz FPSC, NTS, KPPSC, PPSC, SPSC, BPSC, OTS, UTS, PTS, CTS, ATS, ETEA MCQs Test Questions.
2. Stock issued by company have higher rate of return because of______________?
✅ B. High book to market ratio
Option A : Low market to book ratio Option B : High book to market ratio Option C : High market to book ratio Option D : Low book to market ratio Option E : Correct Answer : High book to market ratio Read more
3. All assets are perfectly divisible and liquid in___________?
✅ C. Capital asset pricing model
Option A : Tax free pricing model Option B : Cost free pricing model Option C : Capital asset pricing model Option D : Stock pricing model Option E : Correct Answer : Capital asset pricing model Read more
4. Betas tend to move towards 1.0 with passage of time are classified as__________?
✅ D. Adjusted betas
Option A : Standard betas Option B : Varied betas Option C : Historical betas Option D : Adjusted betas Option E : Correct Answer : Adjusted betas Read more
5. In capital asset pricing model, characteristic line is classified as____________?
✅ A. Regression line
Option A : Regression line Option B : Probability line Option C : Scattered points Option D : Weighted line Option E : Correct Answer : Regression line Read more
6. A theory which states that assets are traded at price equal to its intrinsic value is classified as___________________?
✅ B. Efficient market hypothesis
Option A : Efficient money hypothesis Option B : Efficient market hypothesis Option C : Inefficient market hypothesis Option D : Inefficient money hypothesis Option E : Correct Answer : Efficient market hypothesis Read more
7. Type of relationship exists between an expected return and risk of portfolio is classified as___________?
✅ B. Linear
Option A : Non-linear Option B : Linear Option C : Fixed and aggregate Option D : Non-fixed and non-aggregate Option E : Correct Answer : Linear Read more
8. According to capital asset pricing model assumptions, quantities of all assets are______________?
✅ A. Given and fixed
Option A : Given and fixed Option B : Not given and fixed Option C : Not given and variable Option D : Given and variable Option E : Correct Answer : Given and fixed Read more
9. According to capital asset pricing model assumptions, variances, expected returns and co-variance of all assets are__________?
✅ A. Identical
Option A : Identical Option B : Not identical Option C : Fixed Option D : Variable Option E : Correct Answer : Identical Read more
10. Stocks which has lower book for market ratio are considered as__________?
✅ C. Less risky
Option A : Optimistic Option B : More risky Option C : Less risky Option D : Pessimistic Option E : Correct Answer : Less risky Read more
11. An efficient set of portfolios represented through graph is classified as an__________?
✅ B. Efficient frontier
Option A : Attained frontier Option B : Efficient frontier Option C : Inefficient frontier Option D : Unattainable frontier Option E : Correct Answer : Efficient frontier Read more
12. Stocks which has high book for market ratio are considered as_____________?
✅ A. More risky
Option A : More risky Option B : Less risky Option C : Pessimistic Option D : Optimistic Option E : Correct Answer : More risky Read more
13. If market value is greater than book value, then investors for future stock are considered as___________________?
✅ D. Optimistic
Option A : Experienced Option B : Inexperienced Option C : Pessimistic Option D : Optimistic Option E : Correct Answer : Optimistic Read more
14. In capital market line, risk of efficient portfolio is measured by its____________?
✅ A. Standard deviation
Option A : Standard deviation Option B : Variance Option C : Aggregate risk Option D : Ineffective risk Option E : Correct Answer : Standard deviation Read more
15. A high portfolio return is subtracted from low portfolio return to calculate_________?
✅ A. HML portfolio
Option A : HML portfolio Option B : R portfolio Option C : Subtracted portfolio Option D : None of these Option E : Correct Answer : HML portfolio Read more
16. According to capital asset pricing model assumptions, investors will borrow unlimited amount of capital at any given___________?
✅ B. Risk free rate of interest
Option A : Identical and fixed returns Option B : Risk free rate of interest Option C : Fixed rate of interest Option D : Risk free expected return Option E : Correct Answer : Risk free rate of interest Read more
17. Market where market makers keep record of stock of financial instruments is classified as_________________?
✅ B. Dealer market
Option A : Stock market Option B : Dealer market Option C : Outcry auction system Option D : Face to face communication Option E : Correct Answer : Dealer market Read more
18. Money lends to corporations by banks is classified as___________?
✅ B. Commercial loans
Option A : Eurodollar market deposits Option B : Commercial loans Option C : Consumer credit loans Option D : Consumer credit loans Option E : Correct Answer : Commercial loans Read more
19. Future beta is needed to calculate in most situations is classified as____________?
✅ A. Historical betas
Option A : Historical betas Option B : Adjusted betas Option C : Standard betas Option D : Varied betas Option E : Correct Answer : Historical betas Read more
20. Beta reflects stock risk for investors which is usually_________?
✅ A. Individual
Option A : Individual Option B : Collective Option C : Weighted Option D : Linear Option E : Correct Answer : Individual Read more