**Must read before purchase**
You must edit minimum 20 percent for submission, because universities/institute can catch copy case and provide 0 marks.

Q1. An investor invests his funds in ratio of 7:3 in assets A and B respectively. Given the following information calculate the expected return, variance and standard deviation of the two asset portfolio. (4+3+3=10 marks)

a) Expected return of asset A is 15%

b) Expected return of asset B is 9%

c) Standard deviation of asset A is 20%

d) Standard deviation of asset B is 10%

e) Covariance of asset A and B is 0.0025

Q2. The rates of return on the security of company XYZ and market portfolio for 4 periods are given below:

Period Return of Security XYZ Return on Market Portfolio

1 25 21

2 21 19

3 18 20

4 12 18

5 10 15

Calculate the Beta of the stock XYZ. (10 marks)

Q3. SBI and HDFC are two mutual funds. SBI has observed return of 12% and fund HDFC has observed return of 15%. HDFC has a beta of 0.8 and SBI has a beta of 1.5.

The respective standard deviations are 16% of SBI and 20% of HDFC. The mean return for market index is 11%, while the risk-free return is 10%.

a) Calculate Treynor ratio for each of the funds (5 marks)

b) Calculate the Sharpe ratio for each of the funds (5 marks)