Free CTFA Exam Braindumps (page: 28)

Page 28 of 113

According to the capital-asset pricing model (CAPM), a security's expected (required) return is equal to the risk-free rate plus a premium:

  1. Equal to the security's beta
  2. Based on the unsystematic risk of the security
  3. Based on the total risk of the security
  4. Based on the systematic risk of the security

Answer(s): D



The risk-free security has a beta equal to , while the market portfolio's beta is equal to .

  1. One more than one
  2. One less than one
  3. Zero; one
  4. less than zero; more than zero

Answer(s): C



Carrie has a "certainty equivalent" to a risky gamble's expected value that is less than the gamble's expected value. Carrie shows:

  1. Risk aversion
  2. Risk preference
  3. Risk indifference
  4. A strange outlook on life

Answer(s): A



Specially coded plastic cards used to transfer funds from a customer's bank account to the recipient's account to pay for goods or services.

  1. Credit cards
  2. Debit cards
  3. Automated Teller machine
  4. None of these

Answer(s): B



Page 28 of 113



Post your Comments and Discuss ABA CTFA exam with other Community members:

JUAN commented on June 28, 2023
aba questions to practice
UNITED STATES
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JUAN commented on June 28, 2023
aba questions to practice
UNITED STATES
upvote

Alo commented on November 12, 2018
we shall see, just downloaded. Will report back
Anonymous
upvote