# 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
mangriosahab

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
Zia Ur Rahman

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
hussainzakir

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
syed-ali-ahsanrizvi

Question:

## In capital asset pricing model, characteristic line is classified as

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

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

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
humairaakram

Question:

A: Fixed
B: Identical
C: Not identical
D: Variable
Ayesha Akhtar

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
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
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
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
Iram jameel

Question:

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

Question:

A: Pessimistic
B: More risky
C: Less risky
D: Optimistic
Alex Dwamena

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
zeekhan

Question:

A: Less risky
B: Optimistic
C: More risky
D: Pessimistic
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
Maham ghaffar

Question:

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