801. 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

802. CAPM accounts for:
A. Unsystematic risk
B. Systematic risk
C. Both a and b
D. None of the above

803. 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

804. A portfolio comprises two securities and the expected return on them is 12% and 16% respectively. Determine return of portfolio if first security constitutes 40% of total portfolio.
A. 12.4%
B. 13.4%
C. 14.4%
D. 15.4%

805. Return on any financial asset consists of capital yield and current yield.
A. True
B. False

806. There is no difference between the capital market line and security market line as both the terms are same.
A. True
B. False

807. The value of a bond and debenture is
A. Present value of interest payments it gets
B. Present value of contractual payments it gets till maturity
C. Present value of redemption amount
D. None of the above

809. If the coupon rate is constant, the value of bond when close to maturity will be
A. Issued value
B. Par value
C. Redemption value
D. All of the above

810. A bond is said to be issued at premium when
A. Coupon rate>Required returns
B. Coupon rate=Required returns
C. Coupon rated) None of the above

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