**261. Difference between actual return on stock and predicted return is considered as___________?**

A. Probability error

B. Actual error

C. Prediction error

**D. Random error**

**262. If book value is greater than market value comparison with investors for future stock are considered as_______________?**

**A. Pessimistic**

B. Optimistic

C. Experienced

D. Inexperienced

**263. An unsystematic risk which can be eliminated but market risk is the__________?**

A. Aggregate risk

**B. Remaining risk**

C. Effective risk

D. Ineffective risk

**264. Stocks which has lower book for market ratio are considered as__________?**

A. Optimistic

B. More risky

**C. Less risky**

D. Pessimistic

**265. An efficient set of portfolios represented through graph is classified as an__________?**

A. Attained frontier

**B. Efficient frontier**

C. Inefficient frontier

D. Unattainable frontier

**266. Stocks which has high book for market ratio are considered as_____________?**

**A. More risky**

B. Less risky

C. Pessimistic

D. Optimistic

**267. If market value is greater than book value, then investors for future stock are considered as___________________?**

A. Experienced

B. Inexperienced

C. Pessimistic

**D. Optimistic**

**268. In capital market line, risk of efficient portfolio is measured by its____________?**

**A. Standard deviation**

B. Variance

C. Aggregate risk

D. Ineffective risk

**269. A high portfolio return is subtracted from low portfolio return to calculate_________?**

**A. HML portfolio**

B. R portfolio

C. Subtracted portfolio

**270. According to capital asset pricing model assumptions, investors will borrow unlimited amount of capital at any given___________?**

A. Identical and fixed returns

**B. Risk free rate of interest**

C. Fixed rate of interest

D. Risk free expected return

**NOTE IF YOU THINK ANY OF THE MCQ ABOVE IS WRONG. PLEASE COMMENT WITH CORRECT ANSWER AND ITS DETAIL EXPLANATION IN COMMENT BOX. THANK YOU**

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