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Corporate Finance · Quiz 2 · 12 Apr 2026 · January 2026 term

Question 3: If the slope of the Capital Allocation Line (CAL) is 0.5 …

Question 3

+4 marksOne correct option

If the slope of the Capital Allocation Line (CAL) is 0.5 and the risk-free rate is 4%, what is the expected return of a portfolio on the CAL with a standard deviation of 12%?

  1. A

    2%

  2. B

    4%

  3. C

    8%

  4. D

    10%

Show answer

Correct answer

  • D

    10%

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Question 3 of 25 in the IIT Madras BS Corporate Finance (Corporate Finance) Quiz 2 paper sat on 12 Apr 2026, in the January 2026 term (Corporate Finance 07 Apr 26). It carries 4 marks.

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