3.1What is Portfolio return, Portfolio beta and Portfolio Standard deviation and how are the concepts useful in finance. Explain with illustrations

3.2 In the sheet named share prices you are provided with the historical one year prices of Bharat Forge Limited [BF], L and T and Nifty 500. A fund manager is considering investing an amount of Rs. 5 crores in these two stocks in a portfolio and is exploring options of 25% in BF and 75% in L and T, 50% percent in each and 75% in BF and 25% in L and T. Investments will happen at the last available price. Balance will be held in cash by the fund. The fund analysis estimates that the return for the future should be factored at 80% of the realized returns over the past one year. The standard deviation will be the same levels as the current standard deviation. Given the information compute the portfolio return, beta and risk for the each combination proposed using revised return expectations

	Bharat Forge	L and T		Nifty 500
13-Sep-21	774.5		1,671.70		14852.2
14-Sep-21	780.05		1,696.45		14904.35
15-Sep-21	787.55		1,717.00		15020.55
16-Sep-21	778.45		1,721.25		15104.9
17-Sep-21	761.55		1,716.20		15027.25
20-Sep-21	740.1		1,704.35		14826.75
21-Sep-21	739		1,720.90		14946.3
22-Sep-21	740.85		1,710.90		14990.55
23-Sep-21	764.3		1,769.70		15205.45
24-Sep-21	749.8		1,768.75		15191.95
27-Sep-21	780.65		1,739.60		15189.05
28-Sep-21	755.9		1,737.15		15095.6
29-Sep-21	744.2		1,721.00		15086.95
30-Sep-21	737.45		1,702.95		15052.65
01-Oct-21	727.6		1,696.90		15013.95
04-Oct-21	741.95		1,715.25		15181.15
05-Oct-21	722.9		1,716.70		15280.1
06-Oct-21	721.65		1,695.05		15134.55
07-Oct-21	741.5		1,712.45		15290.15
08-Oct-21	758.6		1,726.90		15365.2
11-Oct-21	794		1,716.90		15428
12-Oct-21	790.55		1,718.20		15481.9
13-Oct-21	804.2		1,752.05		15631.4
14-Oct-21	801		1,789.30		15769.25
18-Oct-21	799		1,788.45		15886.15
19-Oct-21	791.1		1,846.05		15757.85
20-Oct-21	774.05		1,806.70		15568.65
21-Oct-21	782.3		1,805.75		15487.65
22-Oct-21	787.6		1,792.25		15399.7
25-Oct-21	760.65		1,784.15		15334.35
26-Oct-21	785.9		1,796.25		15499.65
27-Oct-21	781.25		1,784.55		15484.35
28-Oct-21	765.3		1,814.25		15190.85
29-Oct-21	767.15		1,766.65		15086.9
01-Nov-21	791.4		1,795.35		15302.7
02-Nov-21	783.15		1,815.65		15314.65
03-Nov-21	775.1		1,889.50		15282.75
04-Nov-21	781.35		1,908.95		15376.9
08-Nov-21	814.65		1,924.55		15520.15
09-Nov-21	834.05		1,943.60		15541.95
10-Nov-21	832		1,950.15		15521.1
11-Nov-21	782.05		1,931.70		15411.1
12-Nov-21	775.05		1,959.95		15579
15-Nov-21	777.35		1,947.05		15592.6
16-Nov-21	800.65		1,955.30		15525.4
17-Nov-21	802.75		1,952.90		15454.95
18-Nov-21	778.75		1,897.00		15302.55
22-Nov-21	740.95		1,864.50		14976.7
23-Nov-21	745.95		1,886.35		15107.8
24-Nov-21	740.6		1,862.50		15046.5
25-Nov-21	735		1,849.90		15150.6
26-Nov-21	698.15		1,778.15		14707.2
29-Nov-21	697.05		1,767.25		14656.45
30-Nov-21	693.65		1,764.75		14648.35
01-Dec-21	699.85		1,786.00		14784.7
02-Dec-21	705.85		1,789.20		14973.95
03-Dec-21	703.75		1,801.25		14856.3
06-Dec-21	687.95		1,782.65		14618.35
07-Dec-21	696.55		1,798.10		14834.5
08-Dec-21	721.35		1,825.05		15073.25
09-Dec-21	724.85		1,879.80		15126.6
10-Dec-21	729.95		1,873.40		15155
13-Dec-21	738.6		1,861.50		15064.25
14-Dec-21	735.9		1,865.70		15043.25
15-Dec-21	728.6		1,880.80		14953.1
16-Dec-21	726.6		1,873.90		14936.45
17-Dec-21	701.05		1,847.10		14673.15
20-Dec-21	664.25		1,799.35		14300.7
21-Dec-21	673.4		1,827.55		14461.4
22-Dec-21	684.35		1,871.00		14639.75
23-Dec-21	697.35		1,878.45		14751.45
24-Dec-21	690.9		1,859.40		14664.8
27-Dec-21	687		1,866.20		14727.6
28-Dec-21	702.05		1,899.50		14867.85
29-Dec-21	701.75		1,894.85		14863.4
30-Dec-21	693.9		1,885.70		14842.05
31-Dec-21	697.85		1,895.90		14996.2
03-Jan-22	710.9		1,922.85		15204.6
04-Jan-22	717		1,937.55		15318.75
05-Jan-22	721		1,948.60		15396.4
06-Jan-22	748.95		1,924.50		15290.1
07-Jan-22	748.3		1,904.90		15348.55
10-Jan-22	767.5		1,953.10		15495.55
11-Jan-22	769.7		1,961.15		15530.55
12-Jan-22	760.5		1,974.20		15667.9
13-Jan-22	768		2,018.40		15721.05
14-Jan-22	781.1		2,044.75		15730.4
17-Jan-22	775.5		2,069.40		15781.25
18-Jan-22	761.15		2,022.20		15573.1
19-Jan-22	758.35		2,020.90		15472.5
20-Jan-22	750.2		2,003.50		15361.1
21-Jan-22	740.4		1,956.05		15180.8
24-Jan-22	718.9		1,899.90		14712.05
25-Jan-22	729.3		1,925.30		14832.2
27-Jan-22	719		1,910.85		14679.7
28-Jan-22	728.9		1,897.55		14723.25
31-Jan-22	735		1,909.20		14921.45
01-Feb-22	748.2		1,990.50		15116.2
02-Feb-22	753.2		1,982.70		15293.35
03-Feb-22	742.05		1,933.65		15135.9
04-Feb-22	730.65		1,947.95		15085.45
07-Feb-22	723.9		1,884.50		14870.6
08-Feb-22	723.4		1,875.60		14857.05
09-Feb-22	747.9		1,888.80		15016.35
10-Feb-22	729.9		1,901.00		15112.2
11-Feb-22	732.35		1,871.25		14891.3
14-Feb-22	700.1		1,799.00		14400.4
15-Feb-22	717.85		1,876.05		14805.55
16-Feb-22	722.05		1,860.70		14789.9
17-Feb-22	703.9		1,868.70		14772.05
18-Feb-22	694.15		1,883.10		14710.7
21-Feb-22	684.4		1,863.95		14597.1
22-Feb-22	691		1,844.45		14489.05
23-Feb-22	704.35		1,820.30		14506.95
24-Feb-22	667.6		1,757.35		13775.7
25-Feb-22	671.8		1,777.05		14187.4
28-Feb-22	678.65		1,816.75		14307.95
02-Mar-22	662.85		1,784.50		14199.8
03-Mar-22	644.1		1,752.30		14135.95
04-Mar-22	632.9		1,711.75		13893.15
07-Mar-22	612.65		1,634.45		13564.25
08-Mar-22	615.25		1,658.50		13706.75
09-Mar-22	628.95		1,690.95		13979.6
10-Mar-22	637.95		1,728.20		14189
11-Mar-22	632.35		1,728.65		14237.15
14-Mar-22	649.45		1,746.75		14374.6
15-Mar-22	653		1,743.45		14215.85
16-Mar-22	674.95		1,756.20		14481.8
17-Mar-22	681.9		1,787.90		14721.7
21-Mar-22	669.05		1,756.30		14602.35
22-Mar-22	689.5		1,774.05		14724.05
23-Mar-22	680.85		1,767.25		14695.15
24-Mar-22	694.25		1,771.55		14699.35
25-Mar-22	690.3		1,751.10		14651.7
28-Mar-22	699.5		1,741.60		14675.85
29-Mar-22	707.95		1,746.65		14761.9
30-Mar-22	702.6		1,773.60		14896.9
31-Mar-22	700.6		1,767.65		14894.5
01-Apr-22	702		1,790.10		15087.3
04-Apr-22	709.1		1,826.35		15384.2
05-Apr-22	727.35		1,836.05		15390.5
06-Apr-22	727.35		1,852.80		15327.9
07-Apr-22	729		1,826.30		15201.25
08-Apr-22	746.1		1,830.75		15342.4
11-Apr-22	740.1		1,781.50		15325.5
12-Apr-22	729.35		1,747.70		15164.7
13-Apr-22	733.05		1,760.80		15138.55
18-Apr-22	728.45		1,738.35		14926.05
19-Apr-22	725.95		1,705.75		14726.65
20-Apr-22	731.25		1,691.60		14850.3
21-Apr-22	738.8		1,714.50		15053.95
22-Apr-22	724.05		1,694.35		14894.85
25-Apr-22	701.55		1,657.35		14673
26-Apr-22	728.4		1,699.95		14898.35
27-Apr-22	714.7		1,677.05		14756
28-Apr-22	720.65		1,719.25		14913.9
29-Apr-22	701.75		1,694.35		14783.35
02-May-22	678.45		1,679.45		14736.3
04-May-22	671.65		1,633.95		14393.35
05-May-22	677		1,637.65		14395.5
06-May-22	658.5		1,622.45		14145.75
09-May-22	637.3		1,616.15		13991.75
10-May-22	631.5		1,607.95		13855.95
11-May-22	629.5		1,570.80		13771.8
12-May-22	604		1,526.15		13465.25
13-May-22	629.05		1,534.50		13471.5
16-May-22	661.4		1,542.90		13571.2
17-May-22	678.15		1,604.10		13926.05
18-May-22	690.55		1,572.50		13918.2
19-May-22	661.4		1,547.95		13550.9
20-May-22	674.2		1,610.10		13895.05
23-May-22	690.6		1,644.15		13835.8
24-May-22	675.25		1,626.30		13747.25
25-May-22	665.2		1,574.75		13587.75
26-May-22	667.1		1,564.55		13722.55
27-May-22	673.2		1,600.30		13873.15
30-May-22	685.25		1,660.85		14154.8
31-May-22	704.9		1,654.50		14119.6
01-Jun-22	694.25		1,648.00		14082.9
02-Jun-22	684.8		1,637.15		14167.95
03-Jun-22	659		1,652.05		14077.9
06-Jun-22	649.1		1,640.20		14054.1
07-Jun-22	653.5		1,589.45		13935.6
08-Jun-22	663.85		1,584.55		13886.9
09-Jun-22	679.2		1,595.10		13977.1
10-Jun-22	676.6		1,585.10		13781.75
13-Jun-22	658.9		1,532.05		13416.9
14-Jun-22	649.1		1,544.65		13388.3
15-Jun-22	653.55		1,560.35		13380.85
16-Jun-22	633.2		1,527.40		13089.2
17-Jun-22	634.1		1,489.95		12994.75
20-Jun-22	622.9		1,471.80		12950.75
21-Jun-22	646.85		1,500.30		13241.9
22-Jun-22	637.65		1,478.75		13047.75
23-Jun-22	651.3		1,494.30		13178.8
24-Jun-22	645.15		1,494.85		13322.5
27-Jun-22	647.45		1,535.80		13444.55
28-Jun-22	658.75		1,551.50		13464.25
29-Jun-22	655.55		1,547.90		13417.85
30-Jun-22	651.8		1,558.25		13387.55
01-Jul-22	645.8		1,572.15		13394.45
04-Jul-22	649.4		1,581.70		13472.65
05-Jul-22	657.6		1,564.90		13461.85
06-Jul-22	656.5		1,556.15		13631.3
07-Jul-22	664.85		1,611.10		13765.6
08-Jul-22	668.65		1,687.45		13828.25
11-Jul-22	655.2		1,663.00		13886.85
12-Jul-22	633.1		1,653.75		13779
13-Jul-22	638.4		1,647.25		13726.95
14-Jul-22	659.3		1,646.15		13702.65
15-Jul-22	642.5		1,684.85		13790.2
18-Jul-22	655.55		1,727.65		13984.4
19-Jul-22	668.6		1,729.80		14051.65
20-Jul-22	682.05		1,739.95		14164.4
21-Jul-22	688.15		1,765.15		14271.8
22-Jul-22	706.6		1,767.75		14336.6
25-Jul-22	705.25		1,782.45		14279.5
26-Jul-22	704.05		1,751.25		14141.45
27-Jul-22	713.95		1,796.65		14262.55
28-Jul-22	730.75		1,801.25		14469.1
29-Jul-22	733		1,808.05		14665.65
01-Aug-22	750.1		1,814.70		14846.85
02-Aug-22	751.9		1,793.05		14876.6
03-Aug-22	726.85		1,789.80		14878.05
04-Aug-22	710.65		1,780.10		14892.45
05-Aug-22	706.4		1,787.45		14900.4
08-Aug-22	712.45		1,829.65		14993.35
10-Aug-22	714.65		1,855.15		14985.8
11-Aug-22	735.9		1,867.15		15095.15
12-Aug-22	790.2		1,846.45		15140.55
16-Aug-22	779		1,848.90		15280.5
17-Aug-22	763.65		1,855.70		15379.05
18-Aug-22	749.95		1,894.55		15404.6
19-Aug-22	736		1,936.05		15236.65
22-Aug-22	721.1		1,880.65		15001.75
23-Aug-22	737.9		1,877.05		15090.5
24-Aug-22	733.7		1,893.35		15140.4
25-Aug-22	726.35		1,877.90		15100.65
26-Aug-22	732.8		1,905.40		15147.55
29-Aug-22	723.05		1,881.50		14972.75
30-Aug-22	740.85		1,922.50		15325.05
01-Sep-22	751.6		1,912.95		15211.2
02-Sep-22	766.7		1,940.50		15201.6
05-Sep-22	767.7		1,968.35		15294.4
06-Sep-22	776.75		1,962.30		15313.05
07-Sep-22	765.45		1,958.10		15319.4
08-Sep-22	765.45		1,974.40		15440.7
09-Sep-22	787.65		1,949.75		15467.4
03-Aug-22	8,840.30				14878.05
04-Aug-22	8,956.70				14892.45
05-Aug-22	9,308.60				14900.4