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RISK & RETURN AND Basic of risk & return.
Typology: Exams
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Avg. Return= expected return= 0.0417169738 0. Avg. Return= expected return(yr)= 0.5006036852 0.
Column 1 Column 2 Column 1 0. Column 2 0.00024 0.
4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
-0.02 -0.01 0 0.01 0.02 0.03 0.04 0.05 0.06 0.
-0.
-0.
0
f(x) = 0.1562562487x + 0.
x Linear (x)
Sharp Ratio -54% -54% -55% -54% -52% -48% -42% 4.68% LOWEST RISK WEIGHTAGE SO WE MUST CHO MINIMUM VARIANCE PORT -35% -27% -20% -14% -8% -4% 0% 4% 6%
Avg. Return= expected return(X*)= 0.02094487 0. YEARLY= 25.13% 16.18%
Beta= TATA STEEL 1.045196718 INFOSYS 0. Slope= TATA STEEL 1.045196718 INFOSYS 0. WT WI Beta(p) 0% 100% 0. 10% 90% 0. 20% 80% 0. 30% 70% 0. 40% 60% 0. 50% 50% 0. 60% 40% 0. 70% 30% 0. 80% 20% 0. 90% 10% 0. 100% 0% 1.
SECURITY MARKET LINE= (SML) IS THE RELATION B/W STOCK b AND CAPM RET. CAPM RET 3.71% 5.50% 7.44% 7.91% 9.39% 13.27% 13.58% 15.21% 17.16% 19.10%
0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
Column G Linear (Column G)
0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2
0.00%
0.001484 0.00155118 0.0004654 covariance 0.038524 0.03938497 0.
b AND CAPM RET.
2
Column G Linear (Column G)
2