The study of finance mainly revolves around planning and analyzing usage of finance ie money, it is very important to study finance and be good at it because it can prepare you not only for a career in the financial sector but also help you in tasks in your everyday life. Take this finance quiz and know it all about finance. Best of luck!
They believe they will be rewarded for doing so
They have to
It is necessary to guarantee an additional realized return
Actual returns are below expected return
Eligible set
Efficient set
Security universe
Principal components
It offers the same expected return with less risk
It offers higher expected return for the same risk
Both a and b
None of the above
Is usually efficient
Is always efficient
Is never efficient
Is usually the optimal portfolio
Lie on the efficient frontier
Are minimum risk portfolios
Have maximum expected returns
Have low correlations
Linear
Curved
Shaped like a letter S
Less attractive by moving down and to the right
At the far right of the efficient frontier
At the far left of the efficient frontier
Above the efficient frontier
Below the efficient frontier
Market line
Optimum combination line
Dominant line
Unlevered investment line
As many securities as possible
As many uncorrelated securities as possible
Only the risk-free rate and the market portfolio
Only two risky portfolios on the efficient frontier
Borrowing portfolios
Fully invested portfolios
Dominant portfolios
Lending portfolios
Corner portfolios
Odd-numbered portfolios
Low variance portfolios
Maximum return portfolios
Linear programming
Goal programming
Integer programming
Quadratic programming
–1.0
–0.5
0
1.0
The higher expected return of this asset
The risk reducing properties when added to a portfolio
That it is a necessary component to have a fully diversified portfolio
Non-existent because negative beta assets are theoretically impossible
Standard deviation
Variance
Beta
There is no relationship of the SML with expected returns
Curved line which passes through the risk-free rate and the Market portfolio
Straight line which passes through the risk-free rate and the Market portfolio
Line which dominates all assets except those on the efficient frontier
Line tangent to the efficient frontier
Market model
SML
CML
Security variances
1-2%
5-7%
10-20%
30-50%
8%
17%
51%
83%
Increases
Decreases
Remains unchanged
There is no relation between systematic risk and the Evans and Archer study
5%
17%
27%
54%
6.2%
11.7%
19.6%
27.1%
Decreasing
Increasing
Remaining unchanged
Cannot be determined
One half
Five eighths
Three fourths
Seven eighths
100,000
250,000
1 million
100 million