Question 30
The optimal weight allocated to the risky asset for the investor is 70%.
The standard deviation of the optimal portfolio is 7%.
The expected return of the optimal portfolio is 9.9%.
The Sharpe ratio of the risky asset is 0.7.
Corporate Finance End Term 21 Dec 2025 — Question 30
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Correct answers
The optimal weight allocated to the risky asset for the investor is 70%.
The standard deviation of the optimal portfolio is 7%.
The expected return of the optimal portfolio is 9.9%.
The Sharpe ratio of the risky asset is 0.7.
Question 30 of 30 in the IIT Madras BS Corporate Finance (Corporate Finance) End Term paper sat on 21 Dec 2025, in the September 2025 term (Corporate Finance 18 Dec 25). It carries 4 marks.
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