Question 8
You create a portfolio of 16 identical assets that have an expected return of 20% and a standard deviation of 20%. These 16 assets are uncorrelated with each other. What is the standard deviation of your portfolio?
20%
10%
5%
1.25%
Question 8: You create a portfolio of 16 identical assets that have a…
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Correct answer
5%
Question 8 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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