Your client is holding following securities as proxy of market portfolio : Particulars of securities Purchase Price (₹) Dividends (₹) Expected Market Price after 1 year (₹) BETA (β) Equity shares : Company-A 8,000 800 8,
CS Professional · Financial, Treasury and Forex Management · PYQS · June 2014
Your client is holding following securities as proxy of market portfolio : Particulars of securities Purchase Price (₹) Dividends (₹) Expected Market Price after 1 year (₹) BETA (β) Equity shares : Company-A 8,000 800 8,200 0.80 Company-B 10,000 800 10,500 0.70 Company-C 16,000 800 22,000 0.50 PSU bonds 34,000 3,400 32,300 1.00 Assume a risk free rate of 15%. Calculate expected rate of return in each, using capital asset pricing model if shares are held for 1 year.
Topics: Portfolio Management
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