Illustrations-1

The return from security Z can be provided in different time periods:

Time Period-2016
Return
Probability
January
0.25
0.1
February
0.15
0.5
March
0.10
0.3
April
0.05
0.2
What would be the average expected risk and return of the security?
Illustrations-2
The return from security A can be provided in different time periods:
Time Period-2016
Return
Probability
Aug
0.3
0.1
Sep
0.2
0.4
Oct
0.1
0.5
Nov
0
0.3
What would be the average expected risk and return of the security?
Illustrations-3
The Return on two securities X and Y are given below. Select the security
according to risk and return
Return on security X
5
4
0

Return on security Y
1
3
3

Probability
.5
.4
.1

Illustrations-4
An investor has to choose from two securities. The following are their rates of
return and probabilities.
Security Q
Return %
Probability
20
0.1
16
0.4
10
0.3
3
0.2
Which is better Security?

Security P
Return%
13
16
22
25

Probability
0.1
0.2
0.3
0.4

Illustrations-5
Mr. Joshi has a portfolio of securities. These are as follows
Amounts
600000
900000
Return
7%
12%
Find out expected return on portfolio

1200000
19%

1500000
10%

1800000
2%

Illustrations-6
Find the risk and return of the following 5 securities. Give an analysis should
the investor keep all these securities?
Securities
1
2
3
4
5

Return %
25
30
35
40
45

Probability
0.7
0.5
0.6
0.4
0.3

Illustrations-7
Mr. Ahmed invests OMR 100000 in 5 securities. He is interested in finding out
his return.
Securities
Security A
Security B
Security X
Security Y
Security P

Return %
300000
200000
250000
150000
100000

Return
15%
14%
9%
12%
18%

Illustrations-8
The market price of an equity share is OMR. 60, dividend paid at the end of
the year is OMR. 240 and the price at the end of the year is OMR. 69. What
would be the return of this share?
Illustrations-9

The market price of a share is OMR 155, following information is available

about market condition, dividends and market price after one year.
Market condition
probability
Market price
Bullish
0.25
200
Stable
0.50
160
Bearish
0.25
150
Find out the Expected return of the share and Variability of

Dividend(In OMR)
15
10
5
the return

Illustrations-10
Compare the following two portfolios on the basis of Sharp ratio and Treynor
ratio and offer your comments
Portfolio

Return from the

portfolio
A
10%
B
20%
Market portfolio
15%
Interest free rate of return is 8%

Standard
deviation
15
25
18

Beta
0.85
1.65
1.00

Illustrations-11
Compare the following two portfolios on the basis of Sharp ratio and Treynor
ratio and offer your comments
Portfolio

Return from the

portfolio
A
10%
B
20%
Market portfolio
15%
Interest free rate of return is 8%

Standard
deviation
15
25
18

Beta
0.40
3.00
1.00