You have joined PMS division of Motilal Oswal broking firm as a manager. Your job profile includes the manging portfolio
Posted: Thu Dec 23, 2021 8:28 am
You have joined PMS division of Motilal Oswal broking firm as a
manager. Your job profile includes the manging portfolios of
valuable clients. One of the clients is having four companies in
his portfolio as per weights given below
Stock
Weights
Alpha
Systematic Risk(%²)
Unsystematic Risk(%²)
HUL
0.15
0.47
18.49
35
Axis Bank
0.30
2.48
46.93
20
TCS
0.25
1.02
27.56
40
Tata Motors
0.30
1.27
56.25
50
Expected return from Nifty is 20 % and variance of its return is
25 percent square. Calculate the expected portfolio return and the
portfolio risk using Sharpe's Single Index Model ( 15 MARKS)
manager. Your job profile includes the manging portfolios of
valuable clients. One of the clients is having four companies in
his portfolio as per weights given below
Stock
Weights
Alpha
Systematic Risk(%²)
Unsystematic Risk(%²)
HUL
0.15
0.47
18.49
35
Axis Bank
0.30
2.48
46.93
20
TCS
0.25
1.02
27.56
40
Tata Motors
0.30
1.27
56.25
50
Expected return from Nifty is 20 % and variance of its return is
25 percent square. Calculate the expected portfolio return and the
portfolio risk using Sharpe's Single Index Model ( 15 MARKS)