Risks And Diversification & Efficient Market Hypothesis
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- Risks And Diversification & Efficient Market Hypothesiseconomics-mcqs › risks-and-diversification-efficient-market-hypothesis
- Published
- 30 May 2019
- Last updated
- 28 May 2026
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If someone deposits Rs 100 in a bank account with an annual compound interest rate of 4%, what will be the total balance after five years?
Multiple choice question for Risks And Diversification & Efficient Market Hypothesis. Select an option, then review the explanation below.
Explanation
With a principal of Rs 100 and an annual compound interest rate of 4%, the amount after five years is calculated as 100 × (1 + 0.04)^5 = Rs 121.67.
More Risks And Diversification & Efficient Market Hypothesis MCQs
Practice related questions from the same subject.
- 1.When do speculative bubbles tend to form in the stock market?
- 2.Which action leads to the largest decrease in portfolio risk?
- 3.What is the term for examining a company's financial reports and future potential to assess its worth?
- 4.How does portfolio diversification impact the types of risks involved?
- 5.Which scenario best illustrates the concept of moral hazard?