June 2020 NMIMS Assignment
 1st Semester NMIMS June 2020 – Rs. 3000/ Only
 2nd Semester NMIMS June 2020 – Rs. 3000/ Only
 3rd Semester NMIMS June 2020 – Rs. 3000/ Only
 4th Semester NMIMS June 2020 – Rs. 2500/ Only
Q1. Calculate the standard deviation and return of portfolio consisting of 60% of Security A and 40% of Security B.
TABLE BELOW
Year  Security A return(%)  Security B return(%) 
2015  10  18 
2016  12  15 
2017  9  11 
2018  10  9 
2019  5  7 
Q2. Calculate the return as per CAPM for each of the company’s stock, identify whether they are underpriced, overpriced or correctly priced and advise accordingly. Returns of T Bill is 9%.
Stock  Expected Return  Beta 
Titan  24%  1.8 
Nestle  30%  1.5 
Eicher Motors  12%  1.2 
HDFC  25.9%  1.3 
Sensex  22% 

Q3. An investor was tracking SBI and HDFC mutual funds whose return and beta are as given below:
 Observed Return  Beta 
Portfolio SBI  18%  0.75 
Portfolio HDFC  25%  1.25 
Return on the market portfolio is 11%, while the riskfree return is 8%. Assume standard Deviation of the market to be 7%.
 Compute the Jensen index for each of the funds and comment which one is better.
 Compute the Treynor index for each of the funds and comment which one is better.
Previous Semester
APR 2020 NMIMS SOLUTION
Q1. The following data shows the return of Alpha Ltd and the Market:
TABLE GIVEN BELOW
Year  Return Alpha(%)  Return Market (%) 
1  12  18 
2  16  17 
3  17  19 
4  14  18 
5  10  15 
Calculate the Beta of Alpha Ltd and interpret. Explain the implications of different values of Beta.
Q2. Calculate the standard deviation and return of portfolio consisting of 60% of Security A and 40% of Security B. Assume correlation coefficient between stock A and stock B is 0.55. Interpret the benefit of portfolio over individual stock investment (in case of security A and B).
Q3. Observed Return and Beta of SBI Bluechip Fund and Franklin India Equity Fund for the year 2019 are as follows
Assume standard deviation of the market to be 8%, Return on Sensex 15% and the riskfree return to be 7%.
a. Compute the Jensen index for each of the funds and interpret the results. (5 Marks)
b. Compute the Treynor index for each of the funds and interpret the results. (5 Marks)