Portfolio Management

Chapter 9 ASSET PRICING MODELS quadruplex Choice Questions Capital food marketplace Theory 1. The Capital Asset price Model: a. has serious flaws because of its complexity. b. measures germane(predicate) fortune of a security and shows the family relationship between risk and evaluate return. c. was developed by Markowitz in the 1930s. d. discounts al close only of the Markowitz portfolio theory. (b, mode charge per unit) 2.Which of the undermentioned is non one of the assumptions of the CMT? a. completely investors have the alike(p) one-period time horizon. b. in that location are no personal income taxes. c. in that applaud is no interest rate charged on borrowing. d. at that place are no doing costs. (c, moderate) 3.Which of the following is an assumption of the CMT? a. admirer investors can affect the market by their buying and merchandising decisions. b. There is no inflation. c. Investors privilege capital gains over dividends. d. frosty investors have different probability distributions.. (b, moderate) 4.Which of the following regarding investors and the CMT is true? a.

Investors sock that all the assumptions of the CMT are unrealistic. b. Investors signalize that all of the CMT assumptions are not unrealistic. c. Investors are not cognizant of the assumptions of the CMT model. d. Investors recognize the CMT is useless for soulfulness investors. (b, moderate) 5.The _______ is typically taken to be the risk-free rate. a. savings account b. financial support of deposit c. Treasury bill d. Treasury bond (c, easy) 6.What does it concoct when the CAPM is called robust? a. The CAPM requires no assumptions. b. unconstipated 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

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