Master of Business Administration (MBA)

Which of the following statements is/are true with respect Capital Market Line (CML)?I. It is the line passing from risk-free rate through market portfolio. II. The slope of CML is called market price of risk. III. CML fails to express equilibrium pricing relationship between expected return and standard deviation for all efficient portfolios lying along the line.

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Question:

Which of the following statements is/are true with respect Capital Market Line (CML)?I. It is the line passing from risk-free rate through market portfolio. II. The slope of CML is called market price of risk. III. CML fails to express equilibrium pricing relationship between expected return and standard deviation for all efficient portfolios lying along the line.

A.

Only (I) above

B.

Only (II) above

C.

Only (III) above

D.

Both (I) and (II) above

Answer» d. Both (I) and (II) above

Note: The above multiple-choice question is for all general and Competitive Exams in India. 

In the stock-price beta estimation for the Coca-Cola Company, the dependent variable is the:

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Question:

In the stock-price beta estimation for the Coca-Cola Company, the dependent variable is the:

A.

return on Coca-Cola.

B.

price of Coca-Cola stock.

C.

return on the S&P 500.

D.

value of the S&P 500 Index.

Answer» d. value of the S&P 500 Index.

Note: The above multiple-choice question is for all general and Competitive Exams in India. 

Empirical research concludes that betas for:

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Question:

Empirical research concludes that betas for:

A.

individual securities and large portfolios are unstable.

B.

individual securities and large portfolios are stable.

C.

large portfolios are unstable.

D.

individual securities are unstable.

Answer» a. individual securities and large portfolios are unstable.

Note: The above multiple-choice question is for all general and Competitive Exams in India. 

Something that you learn to do by practicing rather than from reading a manual is knownas:

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Question:

Something that you learn to do by practicing rather than from reading a manual is knownas:

A.

Explicit knowledge

B.

Codified knowledge

C.

Embodied knowledge

D.

Symbolic knowledge

Answer» c. Embodied knowledge

Note: The above multiple-choice question is for all general and Competitive Exams in India. 

How do consumers respond to various marketing efforts the company might use? Thestarting point is the _____ of a buyer’s behavior.

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Question:

How do consumers respond to various marketing efforts the company might use? Thestarting point is the _____ of a buyer’s behavior.

A.

belief

B.

subculture

C.

postpurchase feeling

D.

stimulus-response

Answer» d. stimulus-response

Note: The above multiple-choice question is for all general and Competitive Exams in India. 

Specific cultural dimensions that does not have a significant impact on cross-national business interactions is

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Question:

Specific cultural dimensions that does not have a significant impact on cross-national business interactions is

A.

Hofstede’s five cultural dimensions

B.

Monochromatic vs polychromatic tune

C.

Communication

D.

Geography

Answer» d. Geography

Note: The above multiple-choice question is for all general and Competitive Exams in India. 

Which of the following assumptions is common between the pricing models of CAPM and APT?

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Question:

Which of the following assumptions is common between the pricing models of CAPM and APT?

A.

A single period investment horizon

B.

The investors can freely borrow and lend at risk-free rate

C.

The investors select portfolios based on expected mean and variance of return

D.

Investors have homogeneous expectations and are expected-utility-of-wealth maximizers.

Answer» d. Investors have homogeneous expectations and are expected-utility-of-wealth maximizers.

Note: The above multiple-choice question is for all general and Competitive Exams in India.