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Shreyash is holding the following securities: Particulars of Cost (Rs.) Dividends Market Price BETA Securities (Rs.) (Rs.) Equity Shares Co. X 8,000 800 8,200 0.8
Shreyash is holding the following securities: Particulars of Cost (Rs.) Dividends Market Price BETA Securities (Rs.) (Rs.) Equity Shares Co. X 8,000 800 8,200 0.8 Co.Y 10,000 800 10,500 0.7 Co. Z 16,000 800 22,000 0.5 PSU Bonds 34,000 3,400 32,300 0.2 Assuming a Risk- free rate of 15%, Calculate: Expected rate of return of each security, using the Capital Asset Pricing Model (CAPM) Average return of the portfolio
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