The following data shows the return of ABC Ltd Calculate the beta of ABC Ltd
Need Solutions of this Question paper, Visit: www.mbaassignmentsolutions.com Email ID: [email protected] PRAKASH - 09741410271/ 08722788493 Capital Market and Portfolio Management 1. The following data shows the return of ABC Ltd: Year Return on stock (%) Return on Market (%) 2001 25 29 2002 20 18 2003 18 20 2004 15 11 Calculate the beta of ABC Ltd. 2. Calculate return as per CAPM and identify whether they are underpriced, overpriced or correctly priced according to security market line. Companies Actual Return Beta Fama Ltd 10% 0.5 JK Ltd 12% 0.5 HT Ltd 20% 1.5 Nifty 22% T Bills 9% 3. Calculate the following: Mutual Funds Rp (Return) Standard Deviation Beta Mutual Funds Rp (Return) Standard Deviation Beta C1 20% 25% 1.1 C2 15% 20% 0.8 Market 12% 18% Risk free Rate of interest is 6%. (a) Sharpe ratio (b) Treynor ratio Need Solutions of this Question paper, Visit: www.mbaassignmentsolutions.com Email ID: [email protected] PRAKASH - 09741410271/ 08722788493
