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Corporate Finance · End Term · 22 Dec 2024 · September 2024 term · Set QDB3

Question 14: There are two risky assets that are negatively correlate…

Question 14

+3 marksOne correct option

There are two risky assets that are negatively correlated with ρ = – 0.5. Asset 1 has an expected return of 15% and a standard deviation of 10%. Asset 2 has an expected return of 20% and a standard deviation of 12%. What are the weights of the assets in the minimum variance portfolio?

  1. A
  2. B
  3. C
  4. D
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Correct answer

  • C
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Question 14 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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