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

Question 17: OPQ Inc. has an expected rate of return of 25% and a sta…

Question 17

+3 marksOne correct option

OPQ Inc. has an expected rate of return of 25% and a standard deviation of the rate of return of 20%. The expected market return is 12%, and the standard deviation of market return is 12%. OPQ Inc. has a correlation coefficient with the market of 0.6. Then, what is the market beta of OPQ Inc.?

  1. A

    0.8

  2. B

    1.0

  3. C

    1.2

  4. D

    1.5

Show answer

Correct answer

  • B

    1.0

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Question 17 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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