In arbitrage pricing theory, required returns are functioned of two factors which have

A dividend policy
B market risk
C historical policy
D Both A and B

Correct Answer: Both A and B

In arbitrage pricing theory, required returns are functioned of two factors which have dividend policy and market risk. Arbitrage pricing theory (APT) is a multi-factor asset pricing model based on the idea that an asset's returns can be predicted using the linear relationship between the asset’s expected return and a number of macroeconomic variables that capture systematic risk.
Bissoy MCQ
#Commerce #Financial Management

Related Questions

Method of pricing, when two separate pricing methods are used to price transfer of products from one subunit to another, is called
A dual pricing
B functional pricing
C congruent pricing
D optimal pricing
Pricing model approach in which it is assumed that stock price can have one of two values of stock is classified as
A valued approach
B marketability approach
C stock approach
D binomial approach
An investor invests 30%, 40%, 20% and 10% of his total investable amount in four different shares of stock giving returns of 15%, 20%, 12% and 10% respectively. What is the average rate of his returns?
A 13.25%
B 12.25%
C 14.25%
D None of the above
Arif starting from x goes to Y. t the same time Boby starts from Y and goes towards X. Once Arif reaches Y, he changes his direction and returns to X. Once Boby reaches X, he changes his direction and returns to Y. Throughout the journey, Arif travels at 54 kmph and Boby travels at 72 kmph. By the time they meet for the second tike, boby covers 36 km more than Arif. Find the distance (in km) between X and Y.
A 72
B 84
C 96
D None
বাজার স্কিমিং মূল্য নির্ধারণে কোনটি সঠিক বলে বিবেচ্য। (Which one is correct for setting market skimming pricing)
A বিনা প্রবণতা (Sales trend )
B উচ্চ মূল্য (High price)
C বিক্রয় পরিমাণ (Sales volume)
D নিম্ন মূল্য (Low price)
According to which method of pricing issues is close to current economic values?
A Last In First Out
B First In First Out
C Highest In First Out
D weighted average price
Which among the following is not an internal factor of pricing decision?
A Price elasticity as per sales of product
B Consumer's expectation from company by past pricing
C Position of product in product cycle
D Consumer behaviour for given product
In which of the following pricing policies, a firm charges higher initial price for the product and reduces it over time as the demand at higher price is satisfied?
A Peak load pricing
B Incremental pricing
C Skimming
D Penetration pricing
A firm that produces highly substitute goods can adopt which one of the following pricing strategies?
A Transfer pricing
B Going Rate pricing
C Product bundling
D Full cost pricing
In options pricing, an exercise price rises from lower to higher which leads to
A volatile options
B option value increases
C option value decreases
D option value stable

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