**61. A collection of assets held by an investor is called**

(A) corporate bond

(B) random returns

(C) risk premium

**(D) portfolio**

**62. The risk of a well-diversified portfolio depends on the __________ of the securities included in the portfolio.**

(A) specific risk

**(B) market risk**

(C) both A and B

(D) none of these

**63. The contribution of an individual security to the risk of a well-diversified portfolio is measured by?**

**(A) beta**

(B) variance

(C) standard deviation

(D) CAPM

**64. The sensitivity of an asset to the market movements is called**

**(A) beta**

(B) variance

(C) standard deviation

(D) CAPM

**65. The average beta of all stocks in a market is**

(A) –1

(B) 0

**(C) 1**

(D) 1.5

**66. If the daily prices of a stock on 20 and 21 January are 90 and 100 respectively, then what is the daily rate of return?**

(A) 9.9%

(B) 10.10%

**(C) 11.11%**

(D) 12.12%

**67. According to the MM proposition, dividend policy is**

(A) correlated

(B) under-performed

(C) relevant

**(D) irrelevant**

**68. In portfolio analysis __________ curves play an important role.**

(A) circle

(B) ellipse

(C) parabola

**(D) hyperbola**

**69. If stock prices increases, dividend yield**

(A) also increases

**(B) decreases**

(C) remains same

(D) increases to one and a half

**70. According to residual dividend policy, a firm should pay a dividend of all left over when**

(A) zero NPV projects have been funded

**(B) positive NPV projects have been funded**

(C) projects with IRR equal to risk-free interest rate have been funded

(D) projects with IRR greater than risk-free interest rate have been funded

**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**

Hello there, You have performed a great job. I’ll definitely digg it and in my opinion suggest to my friends. I’m sure they’ll be benefited from this website.