Post Utme Delsu 2024 Commerce Question 10

Practice objective / multiple choice question 10 from the 2024 Post Utme Delsu Commerce examination.

Post Utme Delsu 2024 Commerce Objective / Multiple Choice
Question 10 POST_UTME_DELSU • 2024 • COMMERCE • objective

A company has a portfolio of stocks and bonds with a total value of ₦1,500,000. If the company wants to diversify its portfolio by investing in a new stock, and the new stock has a beta of 1.5 and a correlation coefficient of 0.8 with the existing portfolio, how much should the company invest in the new stock?

Answer Options

A. ₦200000
B. ₦300000
Correct Answer C. ₦400000
D. ₦500000
Correct Answer
C
Correct Option:
₦400000

About This Question

This is Post Utme Delsu 2024 Commerce Question 10. It is one of the objective questions from the 2024 Post Utme Delsu Commerce examination.

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