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

Question 5: There are two assets: a risk-free asset with a 4% rate of…

Question 5

+4 marksOne correct option

There are two assets: a risk-free asset with a 4% rate of return and a risky asset with an expected rate of return of 19% and a standard deviation of 10%. What is the slope of the Capital Allocation Line (CAL) of a portfolio consisting of these two assets?

  1. A

    1.25

  2. B

    1.5

  3. C

    1.75

  4. D

    2.0

Show answer

Correct answer

  • B

    1.5

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Question 5 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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