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Corporate Finance · End Term · 22 Dec 2024 · September 2024 term · Set QDB1

Question 13: There are two assets: a risk-free asset that offers a 7%…

Question 13

+3 marksOne correct option

There are two assets: a risk-free asset that offers a 7% rate of return and a risky asset that has an expected rate of return of 20% and a standard deviation of 10%. What is the slope of the Capital Allocation Line consisting of these two assets?

  1. A

    2

  2. B

    1.3

  3. C

    -1.3

  4. D

    -2

Show answer

Correct answer

  • B

    1.3

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Question 13 of 35 in the IIT Madras BS Corporate Finance (Corporate Finance) End Term paper sat on 22 Dec 2024, in the September 2024 term (IIT M DEGREE AN EXAM QDB3 22 Dec 2024). It carries 3 marks.

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