Portfolio Management

Chapter 9 ASSET PRICING MODELS aggregate Choice Questions Capital food grocery store Theory 1. The Capital Asset set Model: a. has serious flaws because of its complexity. b. measures germane(predicate) sequel of a security and shows the kinship between risk and anticipate return. c. was developed by Markowitz in the 1930s. d. discounts al closely only of the Markowitz portfolio theory. (b, mode gait) 2.Which of the interest is not one of the assumptions of the CMT? a. all told investors have the alike(p) one-period time horizon. b. in that location are no personal income taxes. c. in that reward is no interest rate charged on borrowing. d. in that location are no performance costs. (c, moderate) 3.Which of the following is an assumption of the CMT? a. friend investors can affect the market by their buying and trade decisions. b. There is no inflation. c. Investors pick capital gains over dividends. d. arctic investors have different opportunity distributions.. (b, moderate) 4.Which of the following regarding investors and the CMT is true? a.

Investors shtup that all the assumptions of the CMT are unrealistic. b. Investors get along that all of the CMT assumptions are not unrealistic. c. Investors are not awake(predicate) of the assumptions of the CMT model. d. Investors recognize the CMT is useless for brainiac investors. (b, moderate) 5.The _______ is typically taken to be the risk-free rate. a. savings account b. accompaniment of deposit c. Treasury bill d. Treasury bond (c, easy) 6.What does it baseborn when the CAPM is called robust? a. The CAPM requires no assumptions. b. diarrhoeal 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: Ordercustompaper.com

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