Stand Alone Risk and Return Multiple Choice Questions (MCQ) PDF Download

MCQ 1: An expected rate of return is denoted by

1. e-bar
2. r-bar
3. r-hat
4. e-hat

MCQ 2: In expected future returns, the tighter probability distribution shows risk on given investment which is

1. smaller
2. greater
3. less risky
4. highly riskier

MCQ 3: The past realized rate of return in period t is denoted by

1. t bar r
2. t hat r
3. r hat t
4. r bar t

MCQ 4: The risk per unit of return or the stand alone risk is represented by

1. coefficient of standard
2. coefficient of return
3. coefficient of variation
4. coefficient of deviation

MCQ 5: The greater chance of lower actual return than expected return and greater variation is indicated by

1. smaller standard deviation
2. larger standard deviation
3. smaller variance
4. larger variance