Assume risk free rate of return and expected return on market portfolio to be 10% and 15% respectively. If the standard deviatiaon of an asset is 2.8%, market standard deviation is 2.3% and co-relation coefficient of a p
CS Executive · Financial and Strategic Management · PYQS · December 2022
Assume risk free rate of return and expected return on market portfolio to be 10% and 15% respectively. If the standard deviatiaon of an asset is 2.8%, market standard deviation is 2.3% and co-relation coefficient of a portfolio with market is 0.8, the expected rate of return on the portfolio will be : (A) 14.85% (B) 15.87% (C) 16.63% (D) 17.83%
Answer & Explanation:
Correct Answer: Option (A)
Official answer key: (A).
Topics: Financial Management
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