Practice Set - 1 | Practice Set | NISM Series XXI-B: Portfolio Managers Certification Examination

Question 1

The market portfolio in Capital Market Theory consists of:

Question 2

The Capital Market Line differs from the Security Market Line because the CML uses:

Question 3

Can unsystematic risk be significantly reduced through diversification?

Question 4

Can a security with a beta of zero still experience price fluctuations?

Question 5

Which of the following assumptions is commonly associated with CAPM?

Question 6

Capital Market Theory assumes investors are generally:

Question 7

The Capital Market Line represents:

Question 8

A portfolio located on the Capital Market Line is generally considered:

Question 9

Which of the following best describes systematic risk?

Question 10

Can two securities with identical betas have different total risks?

Question 11

The slope of the Security Market Line primarily represents:

Question 12

Can investors lend or borrow at the risk-free rate according to Capital Market Theory assumptions?

Question 13

According to CAPM, the expected return of a security depends mainly on:

Question 14

A beta equal to 1 generally implies that a security:

Question 15

Capital Market Theory primarily builds upon:

Question 16

The intercept of the Security Market Line is generally represented by:

Question 17

According to Capital Asset Pricing Model, investors should be compensated for:

Question 18

Can borrowing at the risk-free rate theoretically allow investors to create leveraged portfolios on the Capital Market Line?

Question 19

Which risk is most relevant in determining expected return under CAPM?

Question 20

A security lying below the Security Market Line is generally considered:

Question 21

Can a negative beta security theoretically move opposite to the market?

Question 22

Can a perfectly diversified investor eliminate all portfolio risk completely?

Question 23

According to CAPM, securities with higher beta should generally offer:

Question 24

Can a diversified portfolio still carry systematic risk?

Question 25

Beta in Capital Market Theory measures:

Question 26

The Security Market Line primarily shows the relationship between:

Question 27

A security plotted above the Security Market Line is generally considered:

Question 28

A beta greater than 1 generally indicates that a security is:

Question 29

Which of the following best explains the market risk premium?

Question 30

Practice Set - 1