A(n) _____ is a legally documented claim on an asset, while a _____ is an actual, tangible asset which may be seen, felt, held, or collected.

Related MCQs

• Which of the statements is/are false regarding Arbitrage Pricing Theory (APT)? I. APT assumes that return on any asset can be expressed as a linear function of a set of market factors or indexes. II. The arbitrage price line indicates relation between unsystematic risk and the expected return of an asset. III. While deriving the APT model, APT assumes that the error term can be reduced to zero through appropriate diversification.
• What is the beta of a portfolio that is invested 25 percent in the market portfolio, 25 percent in an asset with twice as much systematic risk as the market portfolio and the rest in a risk-free asset?
• Investors who completely ignore an asset’s variance and only consider the asset’s expected return are called:
• If an asset’s expected return plots above the security market line, the asset is:
• The market risk premium is 15% and the risk-free rate is 5%. The beta of Asset D is 0.2. What is Asset D’s expected return under the CAPM?
• A direct equity claim arises through investment in
• A liquid asset may
• The one-period rate of return from a stock or bond which may or may not be realized can be described by using the term
• If the current market price is considered as a basis of CAPM, then what would happen if Actual Market Price < CAPM,
• Possible variation of the actual return from the expected return is termed as ?