Stocks which has high book for market ratio are considered as_____________?

A: More risky

B: Less risky

C: Pessimistic

D: Optimistic

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More risky

If market value is greater than book value, then investors for future stock are considered as___________________?

A: Experienced

B: Inexperienced

C: Pessimistic

D: Optimistic

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Optimistic

In capital market line, risk of efficient portfolio is measured by its____________?

A: Standard deviation

B: Variance

C: Aggregate risk

D: Ineffective risk

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Standard deviation

A high portfolio return is subtracted from low portfolio return to calculate_________?

A: HML portfolio

B: R portfolio

C: Subtracted portfolio

D: None of these

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HML portfolio

According to capital asset pricing model assumptions, investors will borrow unlimited amount of capital at any given___________?

A: Identical and fixed returns

B: Risk free rate of interest

C: Fixed rate of interest

D: Risk free expected return

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Risk free rate of interest

Difference between actual return on stock and predicted return is considered as___________?

A: Probability error

B: Actual error

C: Prediction error

D: Random error

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Random error

If book value is greater than market value comparison with investors for future stock are considered as_______________?

A: Pessimistic

B: Optimistic

C: Experienced

D: Inexperienced

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Pessimistic

An unsystematic risk which can be eliminated but market risk is the__________?

A: Aggregate risk

B: Remaining risk

C: Effective risk

D: Ineffective risk

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Remaining risk

Markets which deals with high liquid and short-term debt securities are classified as_____________?

A: Capital markets

B: Money markets

C: Liquid markets

D: Short-term markets

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Money markets

Bonds issue by corporations which are more riskier than preferred stocks are classified as_____________?

A: Leases

B: Preferred stocks

C: Common stocks

D: Corporate stocks

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Common stocks

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