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Corporate Finance · Quiz 2 · 1 Dec 2024 · September 2024 term

Question 5: There are two assets: a risk-free asset that offers a 5% …

Question 5

+1 markOne correct option

There are two assets: a risk-free asset that offers a 5% rate of return and a risky asset that has an expected rate of return of 15% and a standard deviation of 10%. What is the slope of the budget line of a portfolio consisting of these two assets?

  1. A

    1.5

  2. B

    1

  3. C

    -1

  4. D

    -1.5

Show answer

Correct answer

  • B

    1

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Question 5 of 25 in the IIT Madras BS Corporate Finance (Corporate Finance) Quiz 2 paper sat on 1 Dec 2024, in the September 2024 term (IIT M DEGREE AN EXAM QDB2 01 Dec 2024). It carries 1 mark.

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