Post Utme Eksu 2022 Commerce Question 35

Practice objective / multiple choice question 35 from the 2022 Post Utme Eksu Commerce examination.

Post Utme Eksu 2022 Commerce Objective / Multiple Choice
Question 35 POST_UTME_EKSU • 2022 • COMMERCE • objective

A company has a risk management strategy that involves diversification. If the company has a portfolio of assets with the following returns: Asset A has a return of 8% and a standard deviation of 12%. Asset B has a return of 10% and a standard deviation of 15%. If the company wants to minimize its risk, what is the optimal portfolio weight for Asset A?

Answer Options

A. 0.2
Correct Answer B. 0.4
C. 0.6
D. 0.8
Correct Answer
B
Correct Option:
0.4

About This Question

This is Post Utme Eksu 2022 Commerce Question 35. It is one of the objective questions from the 2022 Post Utme Eksu Commerce examination.

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