Risk and Return Illustration 13


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Rahul invest the following sums of money in common stocks having expected return as follows:

             Security    Amount Invested ()

Expected Return

Moser Baer

6000

14%

Kirloskar Cummins

11000

16%

FDC Ltd.

9000

17%

Novartis India

7000

13%

GTL

5000

20%

Pfizer

13000

15%

Excel Industry

9000

18%

  1. What is the expected % return on his portfolio?
  1. What would be his expected return if Rahul quadruples his investment in GTL while leaving everything else the same?

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