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Portfolio Management Example 21(May 2010): Your client is holding the following securities: Particulars of Securities Cost Rs. Dividends/Interest Rs. Market price Beta Rs. Equity Shares:

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Portfolio Management Example 21(May 2010): Your client is holding the following securities: Particulars of Securities Cost Rs. Dividends/Interest Rs. Market price Beta Rs. Equity Shares: Gold Ltd. 10,000 1,725 9,800 0.6 Silver Ltd. 15,000 1,000 16,200 0.8 Bronze Ltd. 14,000 700 20,000 0.6 GOI Bonds 36,000 3,600 34,500 1.0 Average return of the portfolio is 15.7%, calculate: (0) Risk free rate of return. Expected rate of return in each, using the Capital Asset Pricing Model (CAPM)

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