Question 7
An asset (A) has a standard deviation of 20%. The market portfolio (M) has a standard deviation of
5%. The correlation between the asset and the market is 0.2. What is the beta (
) of asset A?
0.2
0.8
1.0
3.2
Question 7: An asset (A) has a standard deviation of 20%. The market …
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Correct answer
0.8
Question 7 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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