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Corporate Finance · End Term · 10 May 2026 · January 2026 term · Set 1-2

Question 24: A risky asset has an expected rate of return of 18%, and…

Question 24

+3 marksOne correct option

A risky asset has an expected rate of return of 18%, and the Sharpe ratio of this risky asset is 0.75. If the risk-free rate of return is 8%, then what is the standard deviation of the rate of return of the risky asset?

  1. A

    13.33%

  2. B

    11.22%

  3. C

    9.35%

  4. D

    8.28%

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Correct answer

  • A

    13.33%

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Question 24 of 35 in the IIT Madras BS Corporate Finance (Corporate Finance) End Term paper sat on 10 May 2026, in the January 2026 term (Corporate Finance 06 May 26). It carries 3 marks.

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