Question 5
A risky asset has an expected rate of return of 15% and a standard deviation of the rate of return of 20%. If the Sharpe ratio of this risky asset is 0.6, then what is the prevailing risk-free rate of return?
1.00%
3.00%
4.00%
5.00%
Question 5: A risky asset has an expected rate of return of 15% and a…
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Correct answer
3.00%
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Question 5 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 3 marks.
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