You have Rs. 2,200,000 to invest in a stock portfolio. Your choices are ENGRO, which has a
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Question:
You have Rs. 2,200,000 to invest in a stock portfolio. Your choices are ENGRO, which has a beta of 3, and P&G, which has a beta of 2. The risk-free rate is 4%, and the expected return on the market is 15%. If your goal is to manage a portfolio that has an expected return of 35%, how would you distribute your funds among the two stocks to achieve the required rate of return. Give rupee amount of each stock in your portfolio. List the factors that you considered while assessing the expected return of 35% for this portfolio?
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