Expected Rate of Returns of Portfolio Assignment | Homework For You
June 8th, 2020
Your client is holding the following securities:
Sr.
No. |
Particulars of securities | Cost | Dividends/ Interests | Market price | Beta Risk factor |
Rs | Rs | Rs | |||
A | Equity shares of Gold Ltd | 10,000 | 1,725 | 9,800 | 0.6 |
Equity shares of Silver Ltd | 15,000 | 1,000 | 16,200 | 0.8 | |
Equity shares of Bronze Ltd | 14,000 | 700 | 20,000 | 0.6 | |
B | GOI bonds | 36,000 | 3,600 | 34,500 | 1.0 |
Average return of the portfolio is 15.7 %. You are required to calculate:
- Expected rate of returns of portfolio in each using Capital Asset Pricing Model(CAPM)
- Risk free rate of return.Get Finance homework help today