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CS Executive Practice Test: Methods of Valuation – Corporate and Management Accounting
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CS Executive Practice Test: Methods of Valuation – Corporate and Management Accounting
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25 Questions

1. If the expected return is more than the required return as per CAPM, then –
2. Return of last 5 years of listed security is 16.2%, 19.8%, 18%, 15% & 21%. Five years ago the price of the security was 120 per share. What is its average return
3. Market risk is also called:
4. ____is also called specific risk
5. If the expected return is more than the required return as per CAPM, then –
6. A beta of 1.15 for security would indicate that –
7. The positive alpha value indicates that –
8. ____is also called specific risk
9. The Security Market Line (SML) is a line drawn on a chart that serves as a graphical representation of the Capital Asset Pricing Model, which shows different levels of ____ of various marketable securities plotted against the expected return
10. Market risk is also called:
11. Alpha is denoted by the symbol –
12. If the required return as per CAPM is more than the expected return, then –
13. In contrast to the capital asset pricing model, arbitrage pricing theory:
14. Return of last 5 years of listed security is 16.2%, 19.8%, 18%, 15% & 21%. Five years ago the price of the security was 120 per share. What is its average return
15. In contrast to the capital asset pricing model, arbitrage pricing theory:
16. Beta is a measure of __
17. Investors should be agreeing to invest in riskier investments merely –
18. Systematic risk =
19. According to the CAPM, overpriced securities have:
20. Investors should be agreeing to invest in riskier investments merely –
21. A beta of 1.15 for security would indicate that –
22. If the required return as per CAPM is more than the expected return, then –
23. A beta of 0.8 for security would indicate that –
24. The negative alpha value indicates that –
25. Systematic Risk is –