Two friend Mr. A and Mr. N were discussing about the risks of market. While Mr. A is sort of risk averse, Mr. N is an aggressive investor and…
CA Final · Advanced Financial Management · RTP · November 2024
Two friend Mr. A and Mr. N were discussing about the risks of market. While Mr. A is sort of risk averse, Mr. N is an aggressive investor and believes in taking risk. Mr. N said we cannot diversify the market risk at all, and he quoted the Modern Portfolio Approach. Both friends analyze the market data for the few months and came out with expected returns on two stocks for a particular market. Market Return Aggressive Defensive 7% 4% 9% 25% 40% 18% Based on above scenario, answer the following questions:
Suggested Answer and Working Notes:
Correct Answer: Option (B)
(B) 0.5
Topics: Portfolio Management
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