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I need the answer as soon as possible 9153 Q.50. Batliboi Ltd. has been enjoying a substantial net cash inflow, and until the surplus fund
I need the answer as soon as possible
9153 Q.50. Batliboi Ltd. has been enjoying a substantial net cash inflow, and until the surplus fund are needed to meet tax and divided payments. They have been invested in a small portfolio of short term equity investment Details of the portfolio, which consists of shares in four UK companies, are as follows: Company No. of Beta equity Market price | Latest dividend Expected dividend Shares held co-efficient per shares (5) Yield% Yield % LG Ltd. 60,000 1.16 4.29 6.10 19.50 ITC Ltd. 80,000 2.28 2.92 3.40 24.00 L&T Ltd. 1,00,000 0.90 | 2.17 5.70 17.50 MGF Ltd. 1,25,000 1.50 3.14 3.30 23.00 The current market return is 19% a year and the risk free rate is 11% a year. On the basis of the data given, calculate the risk of Batliboi Ltd's short term investment portfolio relative to that of the market. CS Scanned with CamScanner BonStep by Step Solution
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