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Corporate Finance · Quiz 2 · 23 Nov 2025 · September 2025 term

Question 22: Suppose there are two assets, Asset 1 and Asset 2, with …

Question 22

+4 marksOne correct option

Suppose there are two assets, Asset 1 and Asset 2, with the following characteristics:

• Expected Rate of Return:
,

• Standard Deviation:
,

• Covariance:
Based on the above data, answer the given subquestions.

What would be the standard deviation of the rate of return of the portfolio described in previous question?

  1. A

    0.396

  2. B

    0.542

  3. C

    0.308

  4. D

    0.234

Show answer

Correct answer

  • C

    0.308

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Question 22 of 25 in the IIT Madras BS Corporate Finance (Corporate Finance) Quiz 2 paper sat on 23 Nov 2025, in the September 2025 term (IIT M DEGREE AN EXAM QDB2 23 Nov 2025 NEW). It carries 4 marks.

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