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You have joined PMS division of Motilal Oswal broking firm as a manager. Your job profile includes the manging portfolios of valuable clients. One of

You have joined PMS division of Motilal Oswal broking firm as a manager. Your job profile includes the manging portfolios of valuable clients. One of the clients is having four companies in his portfolio as per weights given below

Stock

Weights

Alpha

Systematic Risk(%)

Unsystematic Risk(%)

HUL

0.15

0.47

18.49

35

Axis Bank

0.30

2.48

46.93

20

TCS

0.25

1.02

27.56

40

Tata Motors

0.30

1.27

56.25

50

Expected return from Nifty is 20 % and variance of its return is 25 percent square. Calculate the expected portfolio return and the portfolio risk using Sharpe's Single Index Model ( 15 MARKS)

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