Post Utme Elizade University 2021 Commerce Question 14

Practice objective / multiple choice question 14 from the 2021 Post Utme Elizade University Commerce examination.

Post Utme Elizade University 2021 Commerce Objective / Multiple Choice
Question 14 POST_UTME_ELIZADE_UNIVERSITY • 2021 • COMMERCE • objective

A company has a risk management strategy that involves diversification. If the company has 3 assets with expected returns of 8%, 10%, and 12% respectively, and the correlation between the assets is 0.5, what is the expected return on the portfolio?

Answer Options

A. 9.5%
Correct Answer B. 10%
C. 10.5%
D. 11%
Correct Answer
B
Correct Option:
10%

About This Question

This is Post Utme Elizade University 2021 Commerce Question 14. It is one of the objective questions from the 2021 Post Utme Elizade University Commerce examination.

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