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The stock of X Ltd. Performs well relative to other stocks during recessionary period. The stock of Y Ltd., on the other hand, does well
The stock of X Ltd. Performs well relative to other stocks during recessionary period. The stock of Y Ltd., on the other hand, does well during growth periods. Both the stocks are currently selling for Rs.100 per share. You assess the rupee return (dividend plus price) of these stocks for the next year as follows. Calculate the expected return and standard deviation of investing. A. Rs.1000 in the equity stock of X Ltd. [1 Mark] B. Rs. 1000 in the equity stock of Y Ltd. [1 Mark] C. Rs. 500 each in the equity stock of X Ltd. and Y Ltd. [3 Marks]
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