1231. Risk of two securities with different expected return can be compared with ______.

A. Coefficient of variation *
B. Standard deviation of securities
C. Variance of securities
D. None of the above

1232. A portfolio having two risky securities can be turned risk less if _______.

A. The securities are completely positively correlated
B. If the correlation ranges between zero and one
C. The securities are completely negatively correlated *
D. None of the above

1233. Efficient frontier comprises of ________.

A. Portfolios that have negatively correlated securities
B. Portfolios that have positively correlated securities
C. Inefficient portfolios
D. Efficient portfolios *

1234. Efficient portfolios can be defined as those portfolios which for a given level of risk provides_______.

A. Maximum return *
B. Average return
C. Minimum return
D. None of the above

1235. Capital market line is ______

A. Capital allocation line of a market portfolio
B. Capital allocation line of a risk free asset
C. Both A and B *
D. None of the above

1236. CAPM accounts for ______.

A. Unsystematic risk
B. Systematic risk *
C. Both A and B
D. None of the above

1237. The point of tangency between risk return indifferences curves and efficient frontier highlights______.

A. Optimal portfolio *
B. Efficient portfolio
C. Sub-optimal portfolio
D. None of the above

1238. A portfolio comprises two securities and the expected return on them is 12 % and 16% respectively.determine return of portfolio if first security constitues 40% of total portfolio_______.

A. 12.4 %
B. 13.4 %
C. 14.4 % *
D. 15.4 %

1239. Return on any financial asset consists of capital yield and current yield.

A. True *
B. False

1240. There is no difference between the capital market line and security market line as both the terms are same ________.

A. True
B. False *