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Q2) You are creating a portfolio consisting of two stocks A and B. You have decided to invest Rs. 1,00,000 in these two stocks. You

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Q2) You are creating a portfolio consisting of two stocks A and B. You have decided to invest Rs. 1,00,000 in these two stocks. You will be investing Rs. 25,000 in stock A and rest amount to stock B. Below are the market returns and stock returns of the indivual stocks. Find the beta and the expected return of the portfolio. The market risk free rate is 6% and Market Risk Premium is estimated 5% Time (years) 1 Market Return -11.94% Return of stock A -19.70% Return of Stock B 15.92% 2 WN 12.09% 5.68% 11.97% 5.63% -43.00% -17.68% 3 4 22.77% -5.11% 5 NO OD 165.00% -33.37% 6 11.50% 0.00% -11.24% 8.54% 11.90% -15.03% -8.00% 14.98% -18.97% 7 8 9 25.35% 19.64% -29.75% 0.40% -21.15% 13.36% 10 11 0.20% -20.60% -11.12% -0.53% 36.61% 29.65% -20.39% -7.34% -60.83% 12 13 -18.43% 57.34% 14 2.65% -3.94% 2.64% 15 -5.97% 8.00% 9.00% -5.00% 3.00% -10.67% -32.00% 16 20.79% 17 -16.50% 4.95% 17.78% -12.00% 18 19 -7.00% -4.62% 9.33% 20 18.66% 6.16% -41.47%

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