Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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BHAVNAGAR

 

As an Investment Manager you are given the following Information
Invest in
Equity
Shares/
Initial
Securities price
Cement
Ltd
Steel Ltd
Liqour Ltd
GOI Bonds
29
38
46
1030
Mkt price at
the end of
Dividends the year
4
4
4
155
II) Average return of the portfolio
Risk free rate is 16%
54
65
145
1040
Beta
Risk
Factor
You are required to calculate
i) Expected rate of return of portfolio in each case using
CAPM
0.9
0.8
0.7
1
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Transcribed Image Text:As an Investment Manager you are given the following Information Invest in Equity Shares/ Initial Securities price Cement Ltd Steel Ltd Liqour Ltd GOI Bonds 29 38 46 1030 Mkt price at the end of Dividends the year 4 4 4 155 II) Average return of the portfolio Risk free rate is 16% 54 65 145 1040 Beta Risk Factor You are required to calculate i) Expected rate of return of portfolio in each case using CAPM 0.9 0.8 0.7 1
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