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Group A Economics Chapter Public Finance MCQs:

The Central Superior Services (denoted as CSS; or Bureaucracy) is an elite permanent bureaucratic authority, and the civil service that is responsible for running the civilian bureaucratic operations and government secretariats and directorates of the Cabinet of Pakistan.

Central Superior Services (CSS) -> Group A -> Economics -> Public Finance

Question:

Stock issued by company have lower rate of return because of

A: Low market to book ratio
B: High market to book ratio
C: Low book to market ratio
D: High book to market ratio
Answer: C

Question:

In capital asset pricing model, assumptions must be followed including

A: Fixed quantities of assets
B: No taxes
C: No transaction costs
D: All of above
Answer: D

Question:

Type of relationship exists between an expected return and risk of portfolio is classified as

A: Fixed and aggregate
B: Non-linear
C: Linear
D: Non-fixed and non-aggregate
Answer: C

Question:

A theory which states that assets are traded at price equal to its intrinsic value is classified as

A: Inefficient market hypothesis
B: Efficient money hypothesis
C: Efficient market hypothesis
D: Inefficient money hypothesis
Answer: C

Question:

In capital asset pricing model, characteristic line is classified as

A: Scattered points
B: Regression line
C: Probability line
D: Weighted line
Answer: B
ayyazbaig

Question:

Betas tend to move towards 1.0 with passage of time are classified as

A: Historical betas
B: Standard betas
C: Varied betas
D: Adjusted betas
Answer: D

Question:

All assets are perfectly divisible and liquid in

A: Capital asset pricing model
B: Tax free pricing model
C: Cost free pricing model
D: Stock pricing model
Answer: A

Question:

Stock issued by company have higher rate of return because of

A: High market to book ratio
B: Low market to book ratio
C: High book to market ratio
D: Low book to market ratio
Answer: C

Question:

According to capital asset pricing model assumptions, variances, expected returns and co-variance of all assets are

A: Fixed
B: Identical
C: Not identical
D: Variable
Answer: B

Question:

According to capital asset pricing model assumptions, quantities of all assets are

A: Not given and variable
B: Given and fixed
C: Not given and fixed
D: Given and variable
Answer: B
janta

Question:

According to capital asset pricing model assumptions, investors will borrow unlimited amount of capital at any given

A: Fixed rate of interest
B: Identical and fixed returns
C: Risk free rate of interest
D: Risk free expected return
Answer: C
fasihahmed

Question:

A high portfolio return is subtracted from low portfolio return to calculat

A: Simple portfolio
B: HML portfolio
C: R portfolio
D: None
Answer: B
niazkhan

Question:

In capital market line, risk of efficient portfolio is measured by its

A: Aggregate risk
B: Standard deviation
C: Variance
D: Ineffective risk
Answer: B

Question:

If market value is greater than book value, then investors for future stock are considered as

A: Pessimistic
B: Experienced
C: Inexperienced
D: Optimistic
Answer: D

Question:

Stocks which has high book for market ratio are considered as

A: Pessimistic
B: More risky
C: Less risky
D: Optimistic
Answer: B

Question:

An efficient set of portfolios represented through graph is classified as an

A: Inefficient frontier
B: Attained frontier
C: Efficient frontier
D: Unattainable frontier
Answer: C
zeekhan

Question:

Stocks which has lower book for market ratio are considered as

A: Less risky
B: Optimistic
C: More risky
D: Pessimistic
Answer: A
PARAS

Question:

An unsystematic risk which can be eliminated but market risk is the

A: Effective risk
B: Aggregate risk
C: Remaining risk
D: Ineffective risk
Answer: C

Question:

If book value is greater than market value comparison with investors for future stock are considered as

A: Experienced
B: Pessimistic
C: Optimistic
D: Inexperienced
Answer: B
Saba

Question:

Difference between actual return on stock and predicted return is considered as

A: Prediction error
B: Probability error
C: Actual error
D: Random error
Answer: D