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

Question 24: Suppose there are two assets, Asset 1 and Asset 2, with …

Question 24

+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 are the weights of Asset 1 and Asset 2 in the minimum variance portfolio?

  1. A

    93%, 7%

  2. B

    83%, 17%

  3. C

    73%, 27%

  4. D

    63%, 37%

Show answer

Correct answer

  • A

    93%, 7%

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Question 24 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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