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Corporate Finance · Quiz 2 · 16 Mar 2025 · January 2025 term

Question 13: You create a portfolio of 9 identical assets that have a…

Question 13

+4 marksOne correct option

You create a portfolio of 9 identical assets that have an expected return of 22% and a standard deviation of 12%. These 9 assets are uncorrelated with each other. What is the standard deviation of your portfolio?

  1. A

    32%

  2. B

    12%

  3. C

    8%

  4. D

    4%

Show answer

Correct answer

  • D

    4%

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Question 13 of 25 in the IIT Madras BS Corporate Finance (Corporate Finance) Quiz 2 paper sat on 16 Mar 2025, in the January 2025 term (IIT M DEGREE AN EXAM QDB2 16 Mar 2025). It carries 4 marks.

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