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An investor has decided to invest to invest 1,00,000 in the shares of two companies, namely, ABC and XYZ. The projections of returns from the

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An investor has decided to invest to invest 1,00,000 in the shares of two companies, namely, ABC and XYZ. The projections of returns from the shares of the two companies along with their probabilities are as follows: Probability ABC(%) XYZ(%) .20 12 16 .25 14 10 .25 -7 28 .30 28 65/ 119 You are required to (0) Comment on return and risk of investment in individual shares. (i) Compare the risk and return of these two shares with a Portfolio of these shares in equal proportions Find out the proportion of each of the above shares to formulate a minimum risk portfolio An investor has decided to invest to invest 1,00,000 in the shares of two companies, namely, ABC and XYZ. The projections of returns from the shares of the two companies along with their probabilities are as follows: Probability ABC(%) XYZ(%) .20 12 16 .25 14 10 .25 -7 28 .30 28 65/ 119 You are required to (0) Comment on return and risk of investment in individual shares. (i) Compare the risk and return of these two shares with a Portfolio of these shares in equal proportions Find out the proportion of each of the above shares to formulate a minimum risk portfolio

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