PROJECT REPORT ON A CASE STUDY ON PORT FOLIO MANAGEMENT

CERTIFICATE

This is to certify that the project work entitled A Case Study on Portfolio Management with reference to Inter-Connected Stock E c!ange of India "imited #ISE$; Hyderabad has been carried out by %%%%% under y !uidance in partial fulfill ent of the Re"uire ents for the award of #

MASTER &F '(SI)ESS A*MI)ISTRATI&)

$%aculty # %inance&

$Course Co'ordinator&

$(irector&

C&)TE)TS
)* CO+P,N- PRO%./E 0* .NTRO(1CT.ON 2* PORT%O/.O ,N,/-3.3 4* ,N,/-3.3 5 .NTERPRET.ON 6* C,/C1/,T.ON O% ,7ER,8E RET1RN O% CO+P,N.E3 9* C,/C1/,T.ON O% PORT%O/.O R.3: ;* C,/C1/,T.ON O% PORT%O/.O <E.8HT3 =* CONC/13.ON >* ?.?./O8R,PH-

CO+P,N- PRO%./E

.nter'connected stock e@chan!e of .ndia li ited A.3EB has been pro oted by )4 Re!ional stock e@chan!es to proCide cost'effectiCe tradin! linka!eDconnectiCity to all the the e bers of the participatin! E@chan!esE with the objectiCe of widenin! arket for the securities listed on these E@chan!es* .3E ai s to address the

needs of s all co panies and retail inCestors with the !uidin! principle of opti iFin! the e@istin! infrastructure and harnessin! the potential of re!ional arketsE so as to transfor these into a li"uid and Cibrant arket throu!h the use of state'of'the'art technolo!y and networkin!* The participatin! E@chan!es of .3E in all about 46GG stock brokersE out of which ore than 0GG haCe been currently re!istered as traders on .3E* .n order to leCera!e its infrastructure and to e@pand its nationwide reachE .3E has also appointed around 46G (ealers across ;G cities other than the participatin! E@chan!e centers* These dealers are ad inistratiCely supported throu!h the re!ional offices of .3E at (elhi AnorthBE kolkata AeastBE Coi batoreE Hyderabad AsouthB and Na!pur AcentralBE besides +u bai*

.3E has also floated a wholly'owned subsidiaryE .3E securities and serCices li ited A.33BE which has taken up corporate e bership of the National 3tock E@chan!e of .ndia /td* AN3EB in both the Capital +arket and %utures and Options se! ents and The 3tock E@chan!eE +u bai .n the E"uities se! entE so that the traders and dealers of .3E can access other arkets and their local securities* <ith the objectiCe of broad basin! the ran!e of its serCicesE .3E has started offerin! the full suite of (P facilities to its TradersE (ealers and their clients* arkets in addition to the .3E arket* .3E thus proCides the inCestors in s aller cities a

one'stop solution for cost'effectiCe and efficient tradin! and settle ent in

&'+ECTI,ES &F T-E C&MPA)./

)* Create a sin!le inte!rated national leCel solution with access to arkets for proCidin! hi!h cost'effectiCe serCice to the country* 0* Create a li"uid and Cibrant national leCel arket for all listed co panies in !eneral and s all capital co panies in particular* 2* Opti ally utiliFe the e@istin! infrastructure and other resources of participatin! 3tock E@chan!esE which are under'utiliFed now* 4* ProCide a leCel playin! field to s all Traders and (ealers by offerin! an opportunity to participate in a national business* 6* Reduce transaction cost* 9* ProCide clearin! and settle ent facilities to the Traders and (ealers across the Country at their doorstep in a decentraliFed ;* 3pread de at tradin! across the country
;

ultiple

illions of inCestors across

arkets haCin! inCest ent'oriented

ode*

SAILENT FEATURES )et0ork of intermediaries/

,s at the be!innin! of the financial year 0GG2'G4E 64= inter ediaries $0G; Traders and 24) (ealers& are re!istered on .3E* , broad of e bers for s the bedrock for any E@chan!eE and in this respectE .3E has a lar!e pool of re!istered inter ediaries who can be tapped for any new line of business*

Ro1ust &2erational SystemsH

The tradin!E settle ent and funds transfer operations of .3E and .33 are co pletely auto ated and state'of'the'art syste s haCe been deployed* The co unication network of .3EE which has connectiCity with oCer 4GG tradin! e bers and is spread across49 citiesE is also used for supportin! the operations of .33* The tradin! software and settle ent softwareE as well as the electronic funds transfer arran!e ent established with H(%C ?ank and .C.C. ?ankE !iCes .3E and .33 the re"uired operational efficiency and fle@ibility to not only handle the secondary Centures* arket functions effectiCelyE but also by leCera!in! the for new

Skilled and e 2erienced man2o0erH

.3E and .33 haCe e@perienced and professional staffE who haCe wide e@perience in 3tock E@chan!esD capital set re"uired to perfor re"uire ents fro arket institutionsE with in so e casesE the e@perience !oin! up to nearly twenty years in this industry* The staff has the skill' a wide ran!e of functionsE dependin! upon the ti e to ti e*

Aggressi3e 2ricing 2olicy/

The philosophy of .3E is to haCe an a!!ressiCe pricin! policy for the Carious products and serCices offered by it* The ai haCin! appeal for the retail is to penetrate the retail on distribution arket and stren!then the positionE so that a wide Cariety of products and serCices arket can be offered usin! a co channel* The a!!ressiCe pricin! policy also ensures that the inter ediaries haCe sufficient financial incentiCes for offerin! these products and serCices to the end' clients*

Trading4 Risk Management and Settlement Soft0are SystemsH

The OR?.T $Online Re!ional ?ourses .nter'connected Tradin!& and ,I.3 $,uto ated E@chan!e .nte!rated 3ettle ent& software deCeloped on the +icrosoft NT platfor E with consultancy assistance fro +icrosoftE are the ost conte porary of the tradin! and settle ent software introduced in the country* The applications haCe been built on a technolo!y platfor E which offers low cost of ownershipE facilitates si ple aintenance and supports easy up !radation and enhance ent* The soft wares are so desi!ned that the transaction processin! capacity depends on the hardware used; capacity can be added by just addin! ine@pensiCe hardwareE without any additional software work* ,i1rant Su1sidiary &2erationsH .33E the wholly owned subsidiary of .3EE is one of the bi!!est E@chan!e subsidiaries in the country* On any !iCen dayE inter ediaries of .33 traded fro country* ore than 06G re!istered 49 cities across the len!th and breadth of the

>

)ame of t!e 'oard of directors

)* Prof* P* 7* Narasi ha 0* 3hri 7* 3hankar 2* (r* 3* (* .srani 4* (r* +* -* :han 6* +r* P* J* +athew 9* +* C* Rodri!ues ;* +r* +* :* ,nanda :u ar =* +r* T*N*T Nayar >* +r* :* (* 8upta )G* +r* 7* R* ?haskar Reddy ))* +r* Ja bu :u ar Jain Public .nterest (irector +ana!in! (irector Public .nterest (irector Public .nterest (irector 3hareholder (irector 3hareholder (irector 3hareholder (irector 3hareholder (irector 3hareholder (irector 3hareholder (irector Tradin! +e ber (irector

I)TR&*(CTI&)

)G

.nCest ent for fro

ay be defined as an actiCity that co

its funds in any financial of return ay Cary

in the present with an e@pectation of receiCin! additional return in the future* a ini u to a a@i u * This possibility of Cariation in the actual return is

The e@pectations brin! with it a probability that the "uantu

known as inCest ent risk* Thus eCery inCest ent inColCes a return and risk* .nCest ent is an actiCity that is undertaken by those who haCe saCin!s* 3aCin!s can be defined as the e@cess of inco e oCer e@penditure* ,n inCestor earnsDe@pects to earn additional could be in the for onetary Calue fro the ode of inCest ent that of financial assets*

The three i portant characteristics of any financial asset areH Return'the potential return possible fro an asset* the chances of its Calue

Risk'the Cariability in returns of the asset for !oin! downDup*

/i"uidity'the ease with which an asset can be conCerted into cash* .nCestors tend to look at these three characteristics while decidin! on their indiCidual preference pattern of inCest ents* Each financial asset will haCe a certain leCel of each of these characteristics*

In3estment a3enues
))

There are a lar!e nu ber of inCest ent aCenues for saCers in .ndia* 3o e of the are arketable and li"uidE while others are non' arketable* 3o e of the are hi!hly risky while so e others are al ost risk less* .nCest ent aCenues can be broadly cate!oriFed under the followin! head* )* Corporate securities 0* E"uity shares* 2* Preference shares* 4* (ebenturesD?onds* 6* (eriCatiCes* 9* Others*

Cor2orate Securities
Joint stock co panies in the priCate sector issue corporate securities* These include e"uity sharesE preference sharesE and debentures* E"uity shares haCe Cariable diCidend and hence belon! to the hi!h risk'hi!h return cate!ory; preference shares and debentures haCe fi@ed returns with lower risk*The classification of corporate securities that can be chosen as inCest ent aCenues can be depicted as shown belowH

E"uity 3hares

Preference shares

?onds

<arrants

(eriCatiCes

MET-&*&"&5. &F T-E ST(*.

)0

&'+ECTI,ES &F T-E ST(*./ The objectiCes of the study are as followsH To study the inCest ent pattern and its related risks 5 returns* To find out opti al portfolioE which !aCe opti al return at a to the inCestor* To see whether the portfolio risk is less than indiCidual risk on whose basis the portfolios are constituted* To see whether the selected portfolios is yieldin! a satisfactory and constant return to the inCestor* To understandE analyFe and select the best portfolio* ini iFe risk

SC&PE &F ST(*./

This study coCers the +arkowitF odel* The study coCers the calculation of

correlations between the different securities in order to find out at what percenta!e funds should be inCested a on! the co panies in the portfolio* ,lso the study includes the calculation of indiCidual 3tandard (eCiation of securities and ends at the calculation of wei!hts of indiCidual securities inColCed in the portfolio* These percenta!es help in allocatin! the funds aCailable for inCest ent based on risky portfolios*

)2

*ATA C&""ECTI&) MET-&*S The data collection ethods* Pri ary collection 3econdary collection ethodsH This ethod includes the data collection fro e bers of the e@chan!e* ethods includes the arket operations and so onE the personal discussion with the authoriFed clerks and lectures of the superintend of the depart ent of also the data collected fro issues of this study the newsE ethods include both the pri ary and secondary collection

ethodsH The secondary collection

a!aFines of the .3E and different books

"IMITATI&)S &F T-E ST(*.

The study confines to the past 0'2 years and present syste issues in brief* The data is collected fro Hence accuracy and correctness can be sa ple !roup has furnished* This study has been conducted purely to understand Portfolio +ana!e ent for inCestors* Construction of Portfolio is restricted to two co panies based on +arkowitF odel* 7ery few and rando ly selected scripts D co panies are analyFed fro listin!s* ?3E of the tradin! procedure in the .3E and the study is confined to the coCera!e of all the related the pri ary and secondary sources and easured only to the e@tend of what the thus is subject to sli!ht Cariation than what the study includes in reality*

)4

 (ata collection was strictly confined to secondary source* No pri ary data is associated with the project* (etailed study of the topic was not possible due to li ited siFe of the project* There was a constraint with re!ard to ti e allocation for the research study i*e* for a period of two onths*

P&RT F&"I& MA)A5EME)T MEA)I)5/

, portfolio is a collection of assets* The assets a fund ana!er would not like to put all his ay be physical or financial like 3haresE ?ondsE (ebenturesE Preference 3haresE etc* The indiCidual inCestor or oney in the sares of one co panyE a@i that would a ount to !reat risk* He would thereforeE follow the a!e old objectiCe to a@i iFe portfolio return and at the sa e ti e

that one should not put all the e!!es into one basket* ?y doin! soE he can achieCe ini iFin! the portfolio risk by diCersification* Portfolio Portfolio Ciew to ana!e ent is the ana!e ent of Carious financial assets which that is desi!ned with a

co prise the portfolio* ana!e ent is a decision # support syste eet the ulti'faced needs of inCestors* eans the total holdin!s of securities belon!in! to any eans any person who pursuant to a contract or

,ccordin! to 3ecurities and E@chan!e ?oard of .ndia Portfolio +ana!er is defined asH Jportfolio personK* PORTFOLIO MANAGER arran!e ent with a clientE adCises or directs or undertakes on behalf of the
)6

client $whether as a discretionary portfolio client* DISCRETIONARY PORTFOLIO MANAGER who e@ercises or

ana!er or otherwise& the

ana!e ent or ad inistration of a portfolio of securities or the funds of the eans a portfolio ana!er

ayE under a contract relatin! to portfolio

ana!e ent ana!e ent of

e@ercises any de!ree of discretion as to the inCest ents or the portfolio of securities or the funds of the client*

F()CTI&)S &F P&RTF&"I& MA)A5EME)T/

To fra e the inCest ent strate!y and select an inCest ent the desired inCest ent objectiCes To proCide a balanced portfolio which not only can hed!e a!ainst the inflation but can also opti iFe returns with the associated de!ree of risk To To ake ti ely buyin! and sellin! of securities a@i iFe the after'ta@ return by inCestin! in Carious ta@ saCin! i@ to achieCe

inCest ent instru ents* STR(CT(RE 6 PR&CESS &F T.PICA" P&RTF&"I& MA)A5EME)T

.n the s all fir E the portfolio .n the case of ediu

ana!er perfor s the job of security analyst*

and lar!e siFed or!aniFationsE job function of portfolio

ana!er and security analyst are separate*

)9

RESEARC$e*!* 3ecurity ,nalysis&

P&RTF&"I& MA)A5ERS

&PERATI&)S $e*!* buyin! and sellin! of 3ecurities&

C"IE)TS

C-ARACTERISTICS &F P&RTF&"I& MA)A5EME)T/ .ndiCiduals will benefit i for the followin! reasonsH <hateCer capital than fro ay be the status of the capital arketE oCer the lon! period uch less ensely by takin! portfolio ana!e ent serCices

arkets haCe !iCen an e@cellent return when co pared to other bank depositsE unitsE etc*E is the stock arket*

for s of inCest ent* The return fro

The .ndian 3tock +arkets are Cery co plicated* Thou!h there are thousands of co panies that are listed only a few hundred which haCe the necessary li"uidity* ECen a on! theseE only so e haCe the !rowth prospects which are conduciCe for inCest ent* .t is i possible for any indiCidual wishin! to inCest and sit down and analyFe all these intricacies of the does nothin! else* ECen if an inCestor is able to understand the intricacies of the separate chaff fro arket and arket unless he

the !rain the tradin! practices in .ndia are so

co plicated that it is really a difficult task for an inCestor to trade in all the
);

ajor e@chan!es of .ndiaE look after his deliCeries and pay ents* This is further co plicated by the Colatile nature of our constant reshuffin! of portfolios* arkets which de ands

T.PES &F P&RTF&"I& MA)A5EME)T/

78 *ISCRETI&)AR. P&RTF&"I& MA)A5EME)T SER,ICE 9*PMS:/ .n this type of serCiceE the client parts with his ana!erE who in returnE handles all the paper workE Portfolio +ana!e ent 3erCiceE to ana!ers park the funds in the inCest ent Caries fro oney )= days treasury bills and >G days co preCailin! at the ti e of inCest ent* 2. )&)-*ISCRETI&)AR. 9)*PMS:/ The reject the ana!er functions as a counsellorE but the inCestor is free to accept or ana!erLs adCice; the paper work is also undertaken by ana!er concentrates on stock ana!er for a arket instru ents with a P&RTF&"I& MA)A5EME)T SER,ICE oney in faCour of the

akes all the decisions and

!iCes a !ood return on the inCest ent and char!es fees* .n the (iscretionary a@i ise the yieldE al ost all portfolio arket securities such as oCerni!ht arketE ercial bills* Nor allyE the return of such oney rates

)4 to )= percentE dependin! on the call

serCice char!e* The

portfolio tailor' ade to the risk takin! ability of the inCestor*

IMPORTANCE OF PORTFOLIO MANAGEMENT :

)=

 E er!ence of institutional inCestin! on behalf of indiCiduals* , nu ber of financial institutionsE task of inCestin! utual funds and other a!encies are undertakin! the oney of s all inCestorsE on their behalf*

8rowth in the nu ber and siFe of inCesti!able funds # a lar!e part of household saCin!s is bein! directed towards financial assets* .ncreased arket Colatility # risk and return para eters of financial assets

are continuously chan!in! because of fre"uent chan!es in !oCern entLs industrial and fiscal policiesE econo ic uncertainty and instability* 8reater use of co puters for processin! ass of data* ethods $e*!*

ProfessionaliFation of the field and increasin! use of analytical "uantitatiCe techni"ues& in the inCest ent decision # akin!

/ar!er direct and indirect costs of errors or shortfalls in

eetin! portfolio

objectiCes # increased co petition and !reater scrutiny by inCestors*

STEPS IN PORTFOLIO MANAGEMENT:

3pecification and "ualification of inCestor objectiCesE constraintsE and preferences in the for of an inCest ent policy state ent* arket e@pectations for the

(eter ination and "ualification of capital econo yE

arket sectorsE industries and indiCidual securities*

)>

 ,llocation of assets and deter ination of appropriate portfolio strate!ies for each asset class and selection of indiCidual securities* Perfor ance objectiCes* +onitorin! portfolio factors and respondin! to chan!es in inCestor objectiCesE constrains and D or capital arket e@pectations* easure ent and eCaluation to ensure attain ent of inCestor

Rebalancin! the portfolio when necessary by repeatin! the asset allocationE portfolio strate!y and security selection*

CRITERIA F&R P&RTF&"I& *ECISI&)S/

.n portfolio ana!e ent e phasis is put on identifyin! the collectiCe indiCidual ore balanced e phasis on diCersification and risk'

i portance of all inCestors holdin!s* The e phasis shifts fro assets selection to a

return interrelationships of indiCidual assets within the portfolio* .ndiCidual securities are i portant only to the e@tent they affect the a!!re!ate portfolio* .n shortE all decisions should focus on the i pact which the decision will haCe on the a!!re!ate portfolio of all the assets held* Portfolio strate!y should be of the portfolioLs owner* oulded to the uni"ue needs and characteristics

0G

 (iCersification across securities will reduce a portfolioLs risk* .f the risk and return are lower than the desired leCelE leCera!es $borrowin!& can be used to achieCe the desired leCel* /ar!er portfolio returns co e only with lar!er portfolio risk* The i portant decision to ake is the a ount of risk which is acceptable* ost

The risk associated with a security type depends on when the inCest ent will be li"uidated* Risk is reduced by selectin! securities with a payoff close to when the portfolio is to be li"uidated* Co petition for abnor al returns is e@tensiCeE so one has to be careful in eCaluatin! the risk and return fro has to act fast to profit fro securities* . balances do not last lon! and one e@ceptional opportunities*

;(A"ITIES &F P&RTF&"I& MA)A5ER/

)* S&()* 5E)ERA" <)&="E*5E/ Portfolio confliction enCiron ent* .n the stock ana!e ent is an

e@citin! and challen!in! job* He has to work in an e@tre ely uncertain and arket eCery new piece of infor ation ust affects the Calue of the securities of different industries in a different way* He ust be able to jud!e and predict the effects of the infor ation he !ets* He haCe sharp decisions* 0* A)A".TICA" A'I"IT./ He ust haCe his own theory to arriCe at the e oryE alertnessE fast intuition and self'confidence to arriCe at "uick

instrinsic Calue of the security* ,n analysis of the securityLs CaluesE co panyE etc*
0)

is s continuous job of the portfolio financial consultant*

ana!er* , !ood analyst

akes a !ood

The analyst can know the stren!thsE weaknessesE

opportunities of the econo yE industry and the co pany* 2* MAR<ETI)5 S<I""S/ He brokers in the stock 4* ust be !ood sales an* He has to arketin! skills help hi a lot*

conCince the clients about the particular security* He has to co pete with the stock arket* .n this conte@tE the

E%PERIE)CE/ .n the cyclical behaCiour of the stock

arket history is ake

often repeatedE therefore the e@perience of the different phases helps to arket trendsE etc*E akes a perfect professional ana!er*

rational decisions* The e@perience of the different types of securitiesE clientsE

P&RTF&"I& '(I"*I)5/
Portfolio decisions for an indiCidual inCestor are influenced by a wide Cariety of factors* .ndiCiduals differ !reatly in their circu stances and thereforeE a financial pro!ra indiCidual needs* e well suited to one indiCidual ay be inappropriate for another* .deallyE an indiCidualLs portfolio should be tailor' ade to fit oneLs

In3estor>s C!aracteristics/ ,n analysis of an indiCidualLs inCest ent situation re"uires a study of personal characteristics such as a!eE health conditionsE personal habitsE fa ily

00

responsibilitiesE business or professional situationE and ta@ statusE all of which affect the inCestorLs willin!ness to assu e risk*

Stage in t!e "ife Cycle/

One of the ost i portant factors affectin! the indiCidualLs inCest ent ay put !reater e phasis objectiCe is his sta!e in the life cycle* , youn! person capital !ains as his ti e horiFon is lar!e*

on !rowth and lesser e phasis on li"uidity* He can afford to wait for realiFation of

Family res2onsi1ilitiesH
The inCestorLs arital status and his responsibilities towards other e bers of the fa ily can haCe a lar!e i pact on his inCest ent needs and !oals* In3estor>s e 2erience/ The success of portfolio depends upon the inCestorLs knowled!e and e@perience in financial he ay wish to be atters* .f an inCestor has an aptitude for financial affairsE ore a!!ressiCe in his inCest ents*

Attitude to0ards Risk/ , personLs psycholo!ical ake'up and financial position dictate his ability to assu e the risk* (ifferent kinds of securities haCe diffferent kinds of risks* The hi!her the riskE the !reater the opportunity for hi!her !ain or loss* "i?uidity )eeds/ /i"uidity needs Cary considerably a on! indiCidual inCestors* .nCestors with re!ular inco e fro other sources ay not worry uch about instantaneous eetin! their
02

li"uidityE but indiCiduals who depend heaCily upon inCest ent for

!eneral or specific needsE

ust plan portfolio to

atch their li"uidity needs*

/i"uidity can be obtained in two waysH )* by allocatin! an appropriate percenta!e of the portfolio to bank depositsE and 0* by re"uirin! that bonds and e"uities purchased be hi!hly Ta considerations/ 3ince different indiCidualsE dependin! upon their inco esE are subjected to different ar!inal rates of ta@esE ta@ considerations beco e ost i portant factor in indiCidualLs portfolio strate!y* There are differin! ta@ treat ents for inCest ent in Carious kinds of assets* arketable*

Time -ori@on/ .n inCest ent plannin!E ti e horiFon beco e an i portant consideration* .t is hi!hly Cariable fro indiCidual to indiCidual* .ndiCiduals in their youn! a!e haCe lon! ti e horiFon for plannin!E they can s ooth out and absorb the ups and downs of risky co bination* .ndiCiduals who are old haCe s aller ti e horiFonE they !enerally tend to aCoid Colatile portfolios* Indi3idual>s Financial &1Aecti3es/ .n the initial sta!esE the pri ary objectiCe of an indiCidual could be to accu ulate wealth Cia re!ular to achieCe lon! ter Safety of Princi2al/ onthly saCin!s and haCe an inCest ent pro!ra e capital !ains*

04

The protection of the rupee Calue of the inCest ent is of pri e i portance to ost inCestors* The ori!inal inCest ent can be recoCered only if the security can be readily sold in the arket without uch loss of Calue*

Assurance of Income/ M(ifferent inCestors haCe different current inco e needs* .f an indiCidual is dependent of its inCest ent inco e for current consu ption then inco e receiCed now in the for of diCidend and interest pay ents beco e pri ary objectiCe*

In3estment Risk/ ,ll inCest ent decisions reColCe around the trade'off between risk and return* ,ll rational inCestors want a substantial return fro ability to understandE easure and properly their inCest ent* ,n ana!e inCest ent risk is funda ental

to any intelli!ent inCestor or a speculator* %re"uentlyE the risk associated with security inCest ent is i!nored and only the rewards are e phasiFed* ,n inCestor who does not fully appreciate the risks in security inCest ents will find it difficult to obtain continuin! positiCe results*

RIS< A)* E%PECTE* RET(R)/

06

There is a positiCe relationship between the a ount of risk and the a ount of e@pected return i*e*E the !reater the riskE the lar!er the e@pected return and lar!er the chances of substantial loss* One of the ost difficult proble s for an inCestor is to esti ate the hi!hest leCel of risk he is able to assu e* Risk is ri!ht* easured alon! the horiFontal a@is and increases fro the left to

E@pected rate of return is botto to top*

easured on the Certical a@is and rises fro

The line fro co

G to R $f& is called the rate of return or risk less inCest ents

only associated with the yield on !oCern ent securities* R $f& to E$r& illustrates the concept of e@pected rate

The dia!onal line for

of return increasin! as leCel of risk increases*

T.PES &F RIS<S/ Risk consists of two co ponents* They are

09

)* 3yste atic Risk 0* 1n'syste atic Risk

78 Systematic Risk/
3yste atic risk is caused by factors e@ternal to the particular co pany and uncontrollable by the co pany* The syste atic risk affects the %actors affect the syste atic risk are econo ic conditions political conditions sociolo!ical chan!es The syste atic risk is unaCoidable* 3yste atic risk is further sub'diCided into three types* They are a& +arket Risk b& .nterest Rate Risk c& Purchasin! Power Risk a:8 Market Risk/ One would notice that when the stock price* On the other handE when the drop* .t is not unco arket sur!es upE ost stocks post hi!her ost co on stocks will ay fluctuate ti e to ti e while a arket as a whole*

arket falls sharplyE

on to find stock prices fallin! fro

co panyLs earnin!s are risin! and Cice'Cersa* The price of stock stable*

widely within a short ti e eCen thou!h earnin!s re ain unchan!ed or relatiCely

0;

b). Interest Rate Risk/ .nterest rate risk is the risk of loss of principal brou!ht about the chan!es in the interest rate paid on new securities currently bein! issued* c)8 Purc!asing Po0er Risk/ The typical inCestor seeks an inCest entE which will !iCe hi current inco e and D or capital appreciation in addition to his ori!inal inCest ent* B8 (n-systematic Risk/ 1n'syste atic risk is uni"ue and peculiar to a fir or an industry* The nature and

ode of raisin! finance and payin! back the loansE inColCe the risk ele ent* %inancial leCera!e of the co panies that is debt'e"uity portion of the co panies differs fro each other* ,ll these factors %actors affect the un'syste atic risk and contribute a portion in the total Cariability of the return* +ana!erial inefficiently Technolo!ical chan!e in the production process ,Cailability of raw aterials

Chan!es in the consu er preference /abour proble s The nature and a!nitude of the aboCe entioned factors differ fro industry to

industry and co pany to co pany* They haCe to be analyFed separately for each industry and fir * 1n'syste atic risk can be broadly classified intoH a& ?usiness Risk b& %inancial Risk
0=

a8

'usiness Risk/ ?usiness risk is that portion of the unsyste atic risk caused by the operatin! enCiron ent of the business* ?usiness risk arises fro the inability of a fir to aintain its co petitiCe ed!e and !rowth or stability of the earnin!s* The Colatibility in stock prices due to factors intrinsic to the co pany itself is known as ?usiness risk* ?usiness risk is concerned with the difference between reCenue and earnin!s before interest and ta@* ?usiness risk can be diCided into*

i:8 Internal 'usiness Risk

.nternal business risk is associated with the operational efficiency of the fir * The operational efficiency differs fro fulfill ent of the pro ises to its inCestors* co pany to co pany* The efficiency of operation is reflected on the co panyLs achieCe ent of its pre'set !oals and the

ii:8 E ternal 'usiness Risk

E@ternal business risk is the result of operatin! conditions i posed on the fir by circu stances beyond its control* The e@ternal enCiron ents in which it onetary and fiscal policies of the !oCern entE business cycle or an industry operates* operates e@ert so e pressure on the fir * The e@ternal factors are social and re!ulatory factorsE and the !eneral econo ic enCiron ent within which a fir 18 Financial Risk/

0>

.t refers to the Cariability of the inco e to the e"uity capital due to the debt capital* %inancial risk in a co pany is associated with the capital structure of the co pany* Capital structure of the co pany consists of e"uity funds and borrowed funds*

P&RTF&"I& A)A".SIS/
7arious !roups of securities when held to!ether behaCe in a different anner and !iCe interest pay ents and diCidends alsoE which are different to the analysis of indiCidual securities* , co bination of securities held to!ether will !iCe a beneficial result if they are !rouped in a takin! into consideration the risk ele ent* There are two approaches in construction of the portfolio of securities* They are Traditional approach +odern approach TRA*ITI&)A" APPR&AC-/ Traditional approach was based on the fact that risk could be easured on anner to secure hi!her return after

each indiCidual security throu!h the process of findin! out the standard deCiation and that security should be chosen where the deCiation was the lowest* Traditional
2G

approach belieCes that the

arket is inefficient and the funda ental analyst can

take adCanta!e fo the situation* Traditional approach is a co prehensiCe financial plan for the indiCidual* .t takes into account the indiCidual needs such as housin!E life insurance and pension plans* Traditional approach basically deals with two ajor decisions* They are a& (eter inin! the objectiCes of the portfolio

3election of securities to be included in the portfolio

M&*ER) APPR&AC-/
+odern approach theory was brou!ht out by +arkowitF and 3harpe* .t is the co bination of securities to !et the securities can be belieCes in the ade in ost efficient portfolio* Co bination of ethod* +odern portfolio theory any ways* +arkowitF deCeloped the theory of

diCersification throu!h scientific reasonin! and

a@i iFation of return throu!h a co bination of securities* The ore attention to

odern approach discusses the relationship between different securities and then draws inter'relationships of risks between the * +arkowitF !iCes the process of selectin! the portfolio* .t does not deal with the indiCidual needs*

MAR<&=ITC M&*E"/
+arkowitF odel is a theoretical fra ework for analysis of risk and return easure ent of risk and in! for selection of assets in a portfolio in an efficient and their relationships* He used statistical analysis for the athe atical pro!ra

anner* +arkowitF apporach deter ines for the inCestor the efficient set of portfolio throu!h three i portant Cariables i*e* Return
2)

 3tandard deCiation Co'efficient of correlation +arkowitF odel is also called as an J%ull CoCariance +odelJ* Throu!h this

odel the inCestor can find out the efficient set of portfolio by findin! out the trade off between risk and returnE between the li its of Fero and infinity* ,ccordin! to this theoryE the effects of one security purchase oCer the effects of the other security purchase are taken into consideration and then the results are eCaluated* +ost people a!ree that holdin! two stocks is less risky than holdin! one stock* %or e@a pleE holdin! stocks fro than inCestin! all the te@tileE bankin! and electronic co panies is better oney on the te@tile co panyLs stock*

+arkowitF had !iCen up the sin!le stock portfolio and introduced diCersification* The sin!le stock portfolio would be preferable if the inCestor is perfectly certain that his e@pectation of hi!hest return would turn out to be real* .n the world of uncertainityE ost of the risk adCerse inCestors would like to join +arkowitF rather than keepin! a sin!le stockE because diCersification reduces the risk*

ASS(MPTI&)S/
,ll inCestors would like to earn the achieCe fro their inCest ents* a@i u rate of return that they can

,ll inCestors haCe the sa e e@pected sin!le period inCest ent horiFon* ,ll inCestors before akin! any inCest ents haCe a co on !oal* This is the aCoidance of risk because .nCestors are risk'aCerse* .nCestors base their inCest ent decisions on the e@pected return and standard deCiation of returns fro Perfect a possible inCest ent* arkets are assu ed $e*!* no ta@es and no transation costs&

20

 The inCestor assu es that !reater or lar!er the return that he achieCes on his inCest entsE the hi!her the risk factor surrounds hi * On the contrary when risks are low the rerturn can also be e@pected to be low* The inCestor can reduce his risk if he adds inCest ents to his portfolio* ,n inCestor should be able to !et hi!her return for each leCel of risk Jby deter inin! the efficient set of securitiesJ* ,n indiCidual seller or buyer cannot affect the price of a stock* This assu ption is the basic assu ption of the perfectly co petitiCe .nCestors standard deCiation and coCariances of all pairs of securities* .nCestors are assu ed to haCe ho o!enous e@pectations durin! the decision' akin! period The inCestor can lend or borrow any a ount of funds at the riskless rate of interest* The riskless rate of interest is the rate of interest offered for the treasury bills or 8oCern ent securities* .nCestors are risk'aCerseE so when !iCen a choice between two otherwise identical portfoliosE they will choose the one with the lower standard deCiation* .ndiCidual assets are infinitely diCisibleE fraction of a share if he or she so desires* There is a risk free rate at which an inCestor oney or borrow stocks* oney* ay either lend $i*e* inCest& eanin! that an inCestor can buy a arket* ake their decisions only on the basis of the e@pected returnsE

There is no transaction cost i*e* no cost inColCed in buyin! and sellin! of

22

There is no personal inco e ta@* HenceE the inCestor is indifferent to the for return either capital !ain or diCidend*

of

T-E EFFECT &F C&M'I)I)5 T=& SEC(RITIES/

.t is belieCed that holdin! two securities is less risky than by haCin! only one inCest ent in a personLs portfolio* <hen two stocks are taken on a portfolio and if they haCe ne!atiCe correlation then risk can be co pletely reduced because the !ain on one can offset the loss on the other* This can be shown with the help of followin! e@a pleH

I)TER- ACTI,E RIS< T-R&(5- C&,ARIA)CE/

CoCariance of the securities will help in findin! out the inter'actiCe risk* <hen the coCariance will be positiCe then the rates of return of securities oCe to!ether either upwards or downwards* ,lternatiCely it can also be said that the inter'actiCe risk is positiCe* 3econdlyE coCariance will be Fero on two inCest ents if the rates of return are independent* Holdin! two securities ay reduce the portfolio risk too* The portfolio risk

can be calculated with the help of the followin! for ulaH

CAPITA" ASSET PRICI)5 M&*E" 9CAPM:/

+arkowitFE <illia 3harpeE John /intner and Jan +ossin proCided the basic odel of linear !eneral e"uilibriu
24

structure of Capital ,sset Pricin! +odel* .t is a

return* .n the C,P+ theoryE the re"uired rate return of an asset is haCin! a linear

relationship with assetLs beta Calue i*e* undiCersifiable or syste atic risk $i*e* arket related risk& because non and syste atci risk arket risk can be eli inated by diCersification easured by beta* ThereforeE the relationship between an assets

return and its syste atic risk can be e@pressd by the C,P+E which is also called the 3ecurity +arket /ine* R2D Rf %fE Rm97- %f: R2 N Portfolio return %f N The proportion of funds inCested in risk free assets 7- %f N The proportion of funds inCested in risky assets Rf N Risk free rate of return Rm N Return on risky assets %or ula can be used to calculate the e@pected returns for different situtionsE like i@in! riskless assets with risky assetsE inCestin! only in the risky asset and i@in! the borrowin! with risky assets* T-E C&)CEPT/ ,ccordin! to C,P+E all inCestors hold only the less securities* The risky assets* arket* Each asset is held in proportion to its arket portfolio and risk

arket portfolio is a portfolio co prised of all stocks in the arket Calue to the total Calue of all

26

%or e@a pleE if 3atya

.ndustry share represents )6O of all risky assetsE then the .ndustry

arket portfolio of the indiCidual inCestor contains )6O of 3atya oney at the risk less rate of interest*

shares* ,t this sta!eE the inCestor has the ability to borrow or lend any a ount of E!*H assu e that borrowin! and lendin! rate to be )0*6O and the return fro the risky assets to be 0GO* There is a trade off between the e@pected return and risk* .f an inCestor inCests in risk free assets and risky assetsE his risk assetsE his risk would increase ore than he inCests his own ay be less than what he inCests in the risky asset alone* ?ut if he borrows to inCest in risky oney in the risky assets* <hen he borrows to inCestE we call it financial leCera!e* .f he inCests 6GO in risk free assets and 6GO in risky assetsE his e@pected return of the portfolio would be R2D Rf %fE Rm97- %f: N $)0*6 @ G*6& P 0G $)'G*6& N 9*06 P )G N )9*06O

if there is a Fero inCest ent in risk free asset and )GGO in risky assetE the return is R2D Rf %fE Rm97- %f: N G P 0GO N 0GO if 'G*6 in risk free asset and )*6 in risky assetE the return is R2D Rf %fE Rm97- %f: N $)0*6 @ 'G*6& P 0G $)*6& N '9*06P 2G N 02*;6O
29

E,A"(ATI&) &F P&RTF&"I&/

Portfolio ana!er eCaluates his portfolio perfor ance and identifies the ana!e ent strate!y* ECen thou!h sources of stren!ths and weakness* The eCaluation of the portfolio proCides a feed back about the perfor ance to eColCe better eCaluation of portfolio perfor ance is considered to be the last sta!e of inCest ent processE it is a continuous process* There are nu ber of situations in which an eCaluation beco es necessary and i portant* i8 Self Valuatio ! ,n indiCidual ay want to eCaluate how well he has done*

This is a part of the process of refinin! his skills and i proCin! his perfor ance oCer a period of ti e* ii8 E"aluatio of Ma a#e$%! , to eCaluate its ana!ers* , utual fund or si ilar or!aniFation utual fund ay haCe seCeral i!ht want

ana!ers each

runnin! a separate fund or sub'fund* .t is often necessary to co pare the perfor ance of these iii8 ana!ers* ay want to eCaluate the Carious

E"aluatio of Mutual Fu &%! ,n inCestor

utual funds operatin! in the country to decide whichE if anyE of these should be chosen for inCest ent* , si ilar need arises in the case of indiCiduals or or!anisations who en!a!e e@ternal a!encies for portfolio adCisory serCices*

2;

E"aluatio

of G$ou'%! ,cade ics or researchers

ay want to eCaluate the

perfor ance of a whole !roup of inCestors and co pare it with another !roup of inCestors who use different techni"ues or who haCe different skills or access to different infor ation* NEED FOR EVAL(ATION OF PORTFOLIO! <e can try to eCaluate eCery transaction* <heneCer a security is brou!ht or soldE we can atte pt to assess whether the decision was correct and profitable* <e can try to eCaluate the perfor ance of a specific security in the portfolio to deter ine whether it has been worthwhile to include it in our portfolio* <e can try to eCaluate the perfor ance of portfolio as a whole durin! the period without e@a inin! the perfor ance of indiCidual securities within the portfolio* )EE* F IMP&RTA)CE/ Portfolio ana!e ent has e er!ed as a separate acade ic discipline in

.ndia* Portfolio theory that deals with the rational inCest ent decision' akin! process has now beco e an inte!ral part of financial literature* .nCestin! in securities such as sharesE debentures 5 bonds is profitable well as e@citin!* .t is indeed rewardin! but inColCes a !reat deal of risk 5 need artistic skill* .nCestin! in financial securities is now considered to be one of the ost risky aCenues of inCest ent* .t is rare to find inCestors inCestin! their entire saCin!s in a sin!le security* .nsteadE they tend to inCest in a !roup of securities* 3uch !roup of
2=

securities is called as PORT%O/.O* Creation of portfolio helps to reduce risk without sacrificin! returns* securities into portfolios* The odern theory is of the Ciew that by diCersificationE risk can be ake diCersification either by haCin! a lar!e nu ber of Portfolio ana!e ent deals with the analysis of indiCidual securities as well as with the theory 5 practice of opti ally co binin!

reduced* The inCestor can

shares of co panies in different re!ionsE in different industries or those producin! different types of product lines* +odern theory belieCes in the perspectiCe of co binations of securities under constraints of risk and return*

P&RTF&"I& RE,ISI&)/
The portfolio which is once selected has to be continuously reCiewed oCer a period of ti e and then reCised dependin! on the objectiCes of the inCestor* The care taken in construction of portfolio should be e@tended to the reCiew and reCision of the portfolio* %luctuations that occur in the e"uity prices cause substantial !ain or loss to the inCestors* The inCestor should haCe co petence and skill in the reCision of the portfolio* The portfolio ana!e ent process needs fre"uent chan!es in the co position of stocks and bonds* .n securitiesE the type of securities to be held should be reCised accordin! to the portfolio policy* ,n inCestor purchases stock accordin! to his objectiCes and return risk fra ework* The prices of stock that he purchases fluctuateE each stock haCin! its

2>

own cycle of fluctuations* These price fluctuations

ay be related to econo ic arket*

actiCity in a country or due to other chan!ed circu stances in the

.f an inCestor is able to forecast these chan!es by deCelopin! a fra ework for the future throu!h careful analysis of the behaCior and a position to the hi oCe ent of stock prices is in ethods are adopted to ake hi!her profit than if he was to si ply buy securities and hold

throu!h the process of diCersification* +echanical in

earn better profit throu!h proper ti in!* The inCestor uses for ula plans to help akin! decisions for the future by e@ploitin! the fluctuations in prices*

F&RM("A P"A)S/
The for ula plans proCide the basic rules and re!ulations for the purchase and sale of securities* The a ount to be spent on the different types of securities is fi@ed* The a ount plans are i* ii* iii* iC* ,Cera!e Rupee Plan Constant Rupee Plan Constant Ratio Plan 7ariable Ratio Plan ay be fi@ed either in constant or Cariable ratio* This depends only used for ula on the inCestorLs attitude towards risk and return* The co

A*,A)TA5ES/
?asic rules and re!ulations for the purchase and sale of securities are proCided*
4G

 The rules and re!ulations are ri!id and help to oCerco e hu an e otion* The inCestor can earn hi!her profits by adoptin! the plans* , course of action is for ulated accordin! to the inCestorLs objectiCes* .t controls the buyin! and sellin! of securities by the inCestor* .t is useful for takin! decisions on the ti in! of inCest ents* *ISA*,A)TA5ES/ The for ula plan does not help the selection of the security* The selection of the security has to be done either on the basis of the funda ental or technical analysis* .t is strict and not fle@ible with the inherent proble of adjust ent*

The for ula plans should be applied for lon! periodsE otherwise the transaction cost ay be hi!h*

ECen if the inCestor adopts the for ula planE he needs forecastin!* +arket forecastin! helps hi to identify the best stocks*

A)A".SIS F I)TERPRETI&)
CALC(LATION OF AVERAGE RET(RN OF COMPANIES!
4)

,Cera!e Return

N $R&DN

ITC LTD! &2ening Closing s!are 2rice s!are 2rice 9PG: 9P7: 9>9*;G 90=*06 90=*06 )G42*)G )G42*)G )240*G6 )240*G6 0>20 )>6*)6 )6)*)6 T&TA" RET(R) ,Cera!e Return N )=G*;>D6 N 29*)9 9P7-PG:6 PGH7GG '>*=0 99*G2 0=*99 ))=*4; '00*66 7IG8JK

ear 0GG0'0GG2 0GG2'0GG4 0GG4'0GG6 0GG6'0GG9 0GG9'0GG;

9P7-PG: '9=*46 4)4*=6 0>=*>6 )6=>*>6 '44

DR REDDY LA)ORATORIES LTD!

.ear 0GG0'0GG2 0GG2'0GG4 0GG4'0GG6 0GG6'0GG9 0GG9'0GG;

&2ening Closing s!are 2rice s!are 2rice 9PG: 9P7: )G>G*>6 >)9*2G >)9*2G >;4*26 >;4*26 ;2>*)6 ;2>*)6 )E40)*4G )E40)*4G )469*66 T&TA" RET(R)

9P7-PG: ');4*96 6=*0 02*60 9=0*06 26*)6

9P7-PG:6 PGH7GG ')9*GG 9*22 '04*)4 >0*2G 0*4; LG8KL

40

,Cera!e Return N 9G*>9D6 N )0*)>

ACC! &2ening Closing s!are 2rice s!are 2rice 9PG: 9P7: )62*4G )2=*6G )2=*6G 064*96 064*96 29G*66 29G*66 ;=0*0G ;=0*0G ;26*06 T&TA" RET(R) ,Cera!e Return N 009*=D6 N 46*29 9P7-PG:6 PGH7GG '>*; =2*=9 4)*6= ))9*>6 '9*GG BBL8I

.ear 0GG0'0GG2 0GG2'0GG4 0GG4'0GG6 0GG6'0GG9 0GG9'0GG;

9P7-PG: ')4*)> ))9*)6 )G6*> 40)*9) '49*>6

)*ARAT *EAVY ELECTRICALS LTD! &2ening Closing s!are 2rice s!are 2rice 9PG: 9P7: )9>*GG 002*)6 002*)6 9G4*26 9G4*26 ;99*4G ;99*4G 004)*>6 004)*>6 009)*26 T&TA" RET(R) ,Cera!e Return N 402*G=D6 N =4*90
42

.ear 0GG0'0GG2 0GG2'0GG4 0GG4'0GG6 0GG6'0GG9 0GG9'0GG;

9P7-PG: 64*)6 2=*)0 )90*G6 )4;6*66 )>*4

9P7-PG:6 PGH7GG 20*G4 );G*=2 09*=) )>0*62 G*=; MBN8GI

*ERO*ONDA A(TOMO)ILES LIMITED! &2ening Closing s!are 2rice s!are 2rice 9PG: 9P7: 22=*66 )==*0G )==*0G 4>G*9G 4>G*9G 64=*GG 64=*GG =>G*46 =>G*46 9==*;6 T&TA" RET(R) ,Cera!e Return N )9;*=0D6 N 22*69 9P7-PG:6 PGH7GG '44*4G )9G*9= ))*;G 90*6G '00*96 7LJ8IB

.ear 0GG0'0GG2 0GG2'0GG4 0GG4'0GG6 0GG6'0GG9 0GG9'0GG;

9P7-PG: ')6G*26 2G0*4G 6;*4G 240*46 '0G*);

+IPRO! &2ening Closing s!are 2rice s!are 2rice 9PG: 9P7: )E;GG*9G )022*46 )E022*46 )29)*0G )E29)*0G 0EG)0 9;G*>6 66>*; 66>*;G 66>*4G T&TA" RET(R) ,Cera!e Return N )4*)2D6 N 0*=2 9P7-PG:6 PGH7GG '0;*4; )G*29 4;*=; ')9*6= 'G*G6 7M87N

.ear 0GG0'0GG2 0GG2'0GG4 0GG4'0GG6 0GG6'0GG9 0GG9'0GG;

9P7-PG: '49;*)6 )0;*;6 96G*= ')))*06 'G*2

44

CA"C("ATI&) &F STA)*AR* *E,IATI&)/

3tandard (eCiation N 7ariance ITC LTD! .ear 0GG0'0GG2 0GG2'0GG4 0GG2'0GG4 0GG4'0GG6 0GG6'0GG9 Return A3g8 9R: Return 9R: '>*=0 29*)9 99*G2 29*)9 0=*99 29*)9 ))=*4; 29*)9 '00*66 29*)9 T&TA" 7ariance N )Dn $R'R&0 N )D6 $)20=4& N 0969*= 3tandard (eCiation N 7ariance N 0969*= N 6)*64 9R-R: '46*>= 0>*=; ';*6 =0*2) '6=*;) 9R-R:B 0))4*)9 =>0*00 69*06 9;;6 244; 7NBIM N )Dn $R'R&0 7ariance

DR. REDDY! .ear 0GG0'0GG2 0GG2'0GG4 0GG4'0GG6 0GG6'0GG9 0GG9'0GG; Return A3g8 9R: Return 9R: ')9*GG )0*)> 9*22 )0*)> '04*)4 )0*)> >0*2G )0*)> 0E4; )0*)> T&TA" 7ariance N )Dn') $R'R&0 N )D6 $=E99)& N );20*0 3tandard (eCiation N 7ariance N );20*0N 4)*90 9R-R: '0=*)> '6*=9 '29*22 =G*)) '>*;0 9R-R:B ;>6 24 )20G 94)= >4 I4LL7

46

ACC! .ear 0GG0'0GG2 0GG2'0GG4 0GG4'0GG6 0GG6'0GG9 0GG9'0GG; Return A3g8 9R: Return 9R: '>*; 46*29 =2*=9 46*29 4)*6= 46*29 ))9*>6 46*29 '9*GG 46*29 T&TA" 7ariance N )Dn') $R'R&0 N )D6 $)0E0>)& N 046= 3tandard (eCiation N 7ariance N 046= N 4>*6= 9R-R: '66*G9 2=*6 '2*;= ;)*6> '6)*29 9R-R:B 2G20 )4=0 )2*9> 6)06 092= 7B4BK7

+IPRO! .ear 0GG0'0GG2 0GG2'0GG4 0GG4'0GG6 0GG6'0GG9 0GG9'0GG; Return A3g8 9R: Return 9R: '0;*4; 0*=2 )G*29 0*=2 4;*=; 0*=2 ')9*6= 0*=2 'G*G6 0*=2 T&TA" 7ariance N )Dn') $R'R&0 N )D6 $22==& N =4; 3tandard (eCiation N 7ariance N =4; N22*G>
49

9R-R: '2G*0> ;*62 46*G4 ')>*4) '0*==

9R-R:B >); 6; 0G0> 2;; = NNII

)*EL! .ear 0GG0'0GG2 0GG2'0GG4 0GG4'0GG6 0GG6'0GG9 0GG9'0GG; Return A3g8 9R: Return 9R: 20*G4 =4*90 );G*=2 =4*90 09*=) =4*90 )>0*62 =4*90 G*=; =4*90 T&TA" 7ariance N )Dn') $R'R&0 N )D6 $20)>=& N 944G 3tandard (eCiation N 7ariance N 944G N =G*06 9R-R: '60*6= =9*0) '6;*=) )G;*>) '=2*;6 9R-R:B 0;96 ;420 2240 ))946 ;G)4 NB47KI

*ERO *ONDA! .ear 0GG0'0GG2 0GG0'0GG2 0GG4'0GG6 0GG6'0GG9 0GG9'0GG; Return A3g8 9R: Return 9R: '44*4G 22*69 )9G*9= 22*69 ))*;G 22*69 90*6G 22*69 '00*96 22*96 T&TA" 7ariance N )Dn') $R'R&0 N )D6 $09E;)6& N 6242 3tandard (eCiation N 7ariance N 6242 N ;2*G> 9R-R: ';;*>; )0;*)0 '0)*=9 0=*>4 '69*0) 9R-R:B 9G;> )9)9G 4;= =2= 2)9G BL4J7O

CA"C("ATI&) &F C&RRE"ATI&)/

4;

CoCariance $CO7 ab& N )Dn $R,'R,&$R?'R?& Correlation Coefficient N CO7 abDaQ b i. ACC ,RA) - ITC ,R)) .EAR 0GG0'0GG2 0GG2'0GG4 0GG4'0GG6 0GG6'0GG9 0GG9'0GG; 9RA-RA: '66*G9 2=*6 '2*;= ;)*6> '6)*29 9R'-R': 9RA-RA: 9R'-R': '46*>= 0620 0>*=; ))4>*>> ';*6 0=*26 =0*2) 6=>0*6; '6=*;) 2G)6 T&TA" 7BL7J8K

CoCariance $CO7 ab& N )D6 $)09);*>& N 0602*6= Correlation Coefficient N CO7 abDaQ b a N 4>*6; ; b N 6)*64 N 0602*6=D$4>*6;&$6)*64& N G*>= ii& ACC (RA) & WIPRO (RB) .EAR 0GG0'0GG2 0GG2'0GG4 0GG4'0GG6 0GG6'0GG9 0GG9'0GG; 9RA-RA: '60*6= =9*0) '6;*=) )G;*>) '=2*;6 T&TA" 9R'-R': 9RA-RA: 9R'-R': ';;*>; 4G>>*99 )0;*)0 )G>6>*G) '0)*=9 )092*;0 0=*>4 2)00*>) '69*0) 4;G;*6= BM7OB8II

CoCariance $CO7 ab& N )D6 $04)60*==& N 4=2G*6; Correlation Coefficient N CO7 abDaQ b a N 09 ; b N 4)*90 N 4=2G*6;D$=G*06&$;2*G>& N G*=0
4=

iii. +IPRO ,RA) - DR REDDY ,R)) .EAR 0GG0'0GG2 0GG2'0GG4 0GG4'0GG6 0GG6'0GG9 0GG9'0GG; 9RA-RA: '2G*0> ;*62 44*>= ')>*4) '0*== T&TA" CoCariance $CO7 ab& N )D6 $'026)*2)& N 4;G*09 Correlation Coefficient N CO7 abDaQ b a N 09*GG ; b N 4)*90 N '4;G*09D$09*GG&$4)*90& N 'G*42 9R'-R': 9RA-RA: 9R'-R': '0=*)> =62*=; '6*=9 '44*)0 '29*22 ')924*)0 =G*)) ')664*>2 '>*;0 0;*>> -BNO78N7

".

ITC ,RA) - )*EL ,R))

.EAR 0GG0'0GG2 0GG2'0GG4 0GG4'0GG6 0GG6'0GG9 0GG9'0GG;

9RA-RA: '46*>= '0>*=; ';E6 =0*2) '6=*;) T&TA"

9R'-R': 9RA-RA: 9R'-R': '60*6= 04);*92 =9*0) '06;6*G> '6;*=) '422*6= )G;*>) ===0*G; '=2*;6 4>)9*>9 7MGJO87O

CoCariance $CO7 ab& N )D6 $)4G;6*)6& N 0=)6*G2 Correlation Coefficient N CO7 abDaQ b
4>

a N 6)*64 ; b N =G*06 N 0=)6*G2D$6)*64&$=G*06& N G*9=

". ACC ,RA) - )*EL ,R)) .EAR 0GG0'0GG2 0GG2'0GG4 0GG4'0GG6 0GG6'0GG9 0GG9'0GG; 9RA-RA: '66*G9 2=*6 '2*; ;)*6> '6)*2 T&TA" 9R'-R': 9RA-RA: 9R'-R': '60*6= 0=>6*G6 =9*0) 22)>*G= '6;*=) 0)2*=> )G;*>) ;;06*0; '=2*;6 40>9*2; 7IMMK8LL

CoCariance $CO7 ab& N )D6 $)=44>*99& N 29=>*>2 Correlation Coefficient N CO7 abDaQ b a N 4>*6; ; b N =G*06 N )=44>*99D$4>*6;&$=G*06& N G*>0

2. Co$$elatio bet.ee ACC - ot/e$ Co0'a ie%! i. ACC ,RA) - *ERO*ONDA ,R)) .EAR 0GG0'0GG2 0GG2'0GG4 0GG4'0GG6 0GG6'0GG9 0GG9'0GG; 9RA-RA: '66*G9 2=*6 '2*;= ;)*6> '6)*29 T&TA" 9R'-R': 9RA-RA: 9R'-R': ';;*>; 40>2*G0 )0;*)0 4=>4*)0 '0)*=9 =0*92 0=*>4 0G;)*=) '69*0) 0==9*>6 7MBBI8ON

CoCariance $CO7 ab& N )D6 $)400=*62& N 0=46*;G

6G

Correlation Coefficient N CO7 abDaQ b a N 4>*6= ; b N ;2*G4 N 0=46*;GD$4>*6;&$09*GG& N G*;=

ii. ACC ,RA) - +IPRO ,R)) .EAR 0GG0'0GG2 0GG2'0GG4 0GG4'0GG6 0GG6'0GG9 0GG9'0GG; 9RA-RA: '66*G9 2=*6 '2*;= ;)*6> '6)*29 T&TA" CoCariance $CO7 ab& N )D6 $649& N )G>*0 Correlation Coefficient N CO7 abDaQ b a N 4>*6;; b N 09*GG
N )G>*0D$4>*6;&$09*GG& N G*G=

9R'-R': 9RA-RA: 9R'-R': '2G*0> )99;*;; ;*62 0=>*>G 44*>= ');G*G0 ')>*4) ')2=>*69 '0*== )4;*>) OML

iii. ACC ,RA) - DR REDDY ,R)) .EAR 0GG0'0GG2 0GG2'0GG4 0GG4'0GG6 0GG6'0GG9 0GG9'0GG; 9RA-RA: '66*G9 2=*6 '2*;= ;)*6> '6)*29 T&TA" 9R'-R': 9RA-RA: 9R'-R': '0=*)> 660*)4 '6*=9 '006*9) '29*22 )2;*22 =G*)) 6;26*G; '>*;0 4>>*0) JLKI87M

CoCariance $CO7 ab& N )D6 $;9>=*)4& N )62>*92 Correlation Coefficient N CO7 abDaQ b a N 4>*6; ; b N 4)*90
6)

N )62>*92D$4>*6;&$4)*90& N G*;4 i". ITC ,RA) - *ERO *ONDA ,R)) .EAR 0GG0'0GG2 0GG2'0GG4 0GG4'0GG6 0GG6'0GG9 0GG9'0GG; 9RA-RA: '46*>= 0>*=; ';*6 =0*2) '6=*;) T&TA" 9R'-R': 9RA-RA: 9R'-R': ';;*>; 26=6*G9 )0;*)0 2;>;*G; '0)*=9 )92*>6 0=*>4 02=0*G6 '69*0) 22GG*G= 7NBBI8B7

CoCariance $CO7 ab& N )D6 $)200=*0)& N 0946*94 Correlation Coefficient N CO7 abDaQ b a N 6)*64 ; b N ;2*G> N 0946*94D$6)*64&$;2*G>& N G*;G 1. Co$$elatio )et.ee DR REDDY - Ot/e$ Co0'a ie% i. ITC,RA) - +IPRO! .EAR 0GG0'0GG2 0GG0'0GG2 0GG2'0GG4 0GG4'0GG6 0GG6'0GG9 9RA-RA: ')9*G04 '09*6;4 '2*9=4 '24*;04 =)*GG9 T&TA" 9R'-R': 9RA-RA: 9R'-R': ')G*=> );4*6G '49*>4 )E04;*2= '=*; 20*G6 '09*>= >29*=6 >2*62 ;E6;9*4> K4KLJ8BI

CoCariance $CO7 ab& N )D6') $>>9;*0=& N 04>)*=0 Correlation Coefficient N CO7 abDaQ b
60

.EAR 0GG0'0GG2 0GG2'0GG4 0GG4'0GG6 0GG6'0GG9 0GG9'0GG;

9RA-RA: '0=*)> '6*=9 '29*22 =G*)) '>*;0 T&TA"

9R'-R': ';;*>; )0;*)0 '0)*=9 0=*>4 '69*0)

9RA-RA: 9R'-R': 0)>;*>; ;44*>0 ;>4*); 02)=*2= 649*29 LLG78I

a N 49*;6 ; b N 64*4= N 04>)*=0D$49*;6&$64*4=& N G*>;= ii. DR. REDDY ,RA) - -ITC ,R)) .EAR 0GG0'0GG2 0GG2'0GG4 0GG4'0GG6 0GG6'0GG9 0GG9'0GG; 9RA-RA: '0=*)> '6*=9 '29*22 =G*)) '>*;0 T&TA" 9R'-R': 9RA-RA: 9R'-R': '46*>= )0>9*); 0>*=; ');6*G2 ';*6 0;0*4; =0*2) 96>2*=6 '6=*;) 6;G*99 IOOI87B

CoCariance $CO7 ab& N )D6 $=66=*)0& N );))*90 Correlation Coefficient N CO7 abDaQ b a N 4)*90 ; b N 6)*64 N );))*90D$4)*90&$6)*64& N G*;>

i38

DR REDDY ,RA) -*ERO*ONDA,R))

CoCariance $CO7 ab& N )D6 $99G)*=& N )20G*29

62

Correlation Coefficient N CO7 abDaQ b a N 4)*90 ; b N ;2*G> N )20G*29D$4)*90&$;2*G>& N G*42 2. Co$$elatio )et.ee *LL - Ot/e$ Co0'a ie%

i. *ERO*ONDA ,RA) - +IPRO,R))

.EAR 0GG0'0GG2 0GG2'0GG4 0GG4'0GG6 0GG6'0GG9 0GG9'0GG;

9RA-RA: ';;*>; )0;*)0 '0)*=9 0=*>4 '69*0) T&TA"

9R'-R': 9RA-RA: 9R'-R': '2G*0> 029)*;) ;*62 >6;*0) 46*G4 '>=4*6; ')>*4) '69)*;0 '0*== )9)*== 7KNM8O7

64

.EAR 0GG0'0GG2 0GG2'0GG4 0GG4'0GG6 0GG6'0GG9 0GG9'0GG;

9RA-RA: '0=*)> '6*=9 '29*22 =G*)) '>*;0 T&TA"

9R'-R': 9RA-RA: 9R'-R': '60*6= )4=0*02 =9*0) '6G6*)> '6;*=) 0)GG*04 )G;*>) =944*9; '=2*;6 =)4*G6 7BONL

CoCariance $CO7 ab& N )D6 $)>24*6)& N 2=9*>G Correlation Coefficient N CO7 abDaQ b a N ;2*G>; b N 09*GG N 2=9*>GD$;2*G>&$09*GG& N G*0G ii. DR REDDY ,RA) - )*EL,R))

CoCariance $CO7 ab& N )D6 $)0629& N 2=9*>G Correlation Coefficient N CO7 abDaQ b a N 4)*90; b N =G*06 N 06G;*0D$4)*90&$=G*06& N G*>2
66

3. CORRELATION )ET+EEN )*EL,RA) - +IPRO,R))

.EAR 0GG0'0GG2 0GG2'0GG4 0GG4'0GG6 0GG6'0GG9 0GG9'0GG;

9RA-RA: '60*6= =9*0) '6;*=) )G;*>) '=2*;6 T&TA"

9R'-R': 9RA-RA: 9R'-R': '2G*0> )6>0*96 ;*62 94>*)9 46*G4 '09G2*;9 ')>*4) '0G>4*62 '0*== 04)*0 -BB7O8BI

CoCariance $CO7 ab& N )D6 $'00)6*0=& N '442*G6 Correlation Coefficient N CO7 abDaQ b a N =G*06; b N 09*GG N '442*G6D$=G*06&$09*GG& N 'G*0)

CA"C("ATI&) &F P&RTF&"I& =EI5-TS/ %OR+1/, H <a N

b Ab'$nabQa&B a0 P b0 ' 0nabQaQb

<b N ) # <a CA"C("ATI&) &F =EI5-TS &F ITC F &T-ER C&MPA)IES/ i* .TC$a& 5 <.PRO $b&

a N 6)*64
69

b N 09*GG nab N 'G*G0

<a N

09*GG A09*GG'$'G*G0Q6)*64&B (51.54) P (26.00)0 # 0$'G*G0&Q(51.54)Q(26.00)

0

<a N

9>G 22=9

<a NG*0G <b N ) # <a <b N )'G*0G N G*=

ii* HEROHON(,$a& 5 <.PRO$b&

a N ;2*G> b N 09*GG nab N G*0G

<a N

09*GG A09*GG'$G*0GQ;2*G>&B (73.09)0 P (26.00)0 # 0$G*0G&Q(73.09)Q(26.00) 0>9 606=

<a N

<a NG*G6 <b N ) # <a <b N )'G*G6 N G*>6

CA"C("ATI&) &F =EI5-TS &F '-E" F =IPR&/

a N =G*06 b N 09*GG nab N 'G*0)

6;

<a N

09*GG A09*GG'$'G*0)Q=G*06&B (80.25)0 P (26.00)0 # 0$'G*0)&Q(80.25)Q(26.00) )))4 ;>>0

<a N

<a NG*)4 <b N ) # <a <b N )'G*)4 N G*=9

CA"C("ATI&) &F =EI5-TS &F =IPR& F &T-E C&MPA)IES/ i* ,CC $a& 5 .TC $b&H

a N 4>*6; b N 6)*64 nab N G*>=

<a N

(49.57)0 P (51.54)0 # 0$G*>=&Q(49.57)Q(51.54) <a N )60 )G9 <a N)*42 <b N ) # <a <b N )')*42 N ' G*42
ii* ?HE/ $a& 5 HEROHON(, $b&

6)*64 A51.54'$G*>=Q49.57&B

a N =G*06 b N ;2*G> nab N G*=0

6=

<a N

;2*G> A;2*G>'$G*=0Q80.25&B (80.25) P (73.09)0 # 0$G*=0&Q(80.25)Q(73.09)

0

<a N

622
0)92

<a NG*04 <b N ) # <a <b N )'G*04 N G*;9

iii* <.PRO $a& 5 (R RE(-- $b&

a N 09*GG b N 4)*90 nab N 'G*42

<a N

4)*90 A41.62'$'G*42Q26.00&B (26.00)0 P (41.62)0 # 0$'G*42&Q(41.62)Q(26.00)

<a N 0)>= )4;; <a N)*4> <b N ) # <a <b N )')*4> N 'G*4>

iC*

.TC $a& 5 ?HE/ $b&

a N 6)*64 b N =G*06 nab N G*9=

<a N

=G*06 A=G*06'$G*9=Q51.54&B
6>

(51.54)0 P (80.25)0 # 0$G*9=&Q(51.54)Q(80.25) <a N 290= 24;) <a N)*G4 <b N ) # <a <b N )')*G4 NG*G4
C* ,CC $a& 5 ?HE/ $b&

a N 4>*6; b N =G*06 nab N G*>0

<a N

=G*06 A=G*06'$G*>0Q49.57&B (49.57)0 P (80.25)0 # 0$G*>0&Q(49.57)Q(80.25)

<a N 0;=) )6;; <a N)*;9 <b N ) # <a <b N )')*;9 N 'G*;9
CA"C("ATI&) &F =EI5-TS &F ACC F &T-ER C&MPA)IES/ iii* ,CC $a& 5 HEROHON(, $b&

a N 4>*6; b N ;2*G> nab N G*;=

<a N

;2*G> A;2*G>'$G*;=Q4>*6;&B (49.57) P (73.09)0 # 0$G*;=&Q(49.57)Q(73.09)

0

9G

<a N 06)9 0)4= <a N)*); <b N ) # <a <b N )')*); N 'G*);
iC* ,CC$a& 5 <.PRO $b&

a N 4>*6; b N 09*GG nab N G*G=

<a N

09*GG A09*GG'$G*G=Q4>*6;&B (49.57) P (26.00)0 # 0$G*G=&Q(49.57)Q(26.00)

0

<a N <a NG*)>

6;2 0>0;

<b N ) # <a <b N )'G*)> N G*=)

C* ,CC $a& 5 (R RE((- $b&

a N 4>*6; b N 4)*90 nab N G*;4

<a N

4)*90 A4)*90'$G*;4Q4>*6;&B (49.57)0 P (41.62)0 # 0$G*;4&Q(49.57)Q(41.62) 0G9 ))29

9)

<a N

<a NG*)= <b N ) # <a <b N )'G*)= N G*=0

Ci* .TC$a& 5 HERO HON(, $b&

a N 6)*64 b N ;2*G> nab N G*;G

<a N

;2*G> A;2*G>'$G*;GQ6)*64&B (51.54) P (73.09)0 # 0$G*;G&Q(51.54)Q(73.09)

0

<a N

0;G9 0;04

<a NG*>> <b N ) # <a <b N )'G*>> N G*G)

CA"C("ATI&) &F =EI5-TS &F *RRE**. F &T-ER C&MPA)IES/ Cii* (RRE((- $a& 5 .TC $b&

a N 4)*90 b N 6)*64 nab N G*;>

<a N

6)*64 A6)*64'$G*;>Q4)*90&B (41.62) P (51.54)0 # 0$G*;>&Q(41.62)Q(51.54)

0

<a N

>90 >>>
90

<a NG*>9 <b N ) # <a <b N )'G*>9 N G*G4

Ciii* (RRE((- $a& 5 HEROHON(, $b&

a N 4)*90 b N ;2*G> nab N G*42

<a N

;2*G> A;2*G>'$G*42Q4)*90&B (41.62)0 P (73.09)0 # 0$G*42&Q(41.62)Q(73.09) 4G24 446=

<a N

<a NG*>G <b N ) # <a <b N )'G*>G N G*)G

i@* (RRE((- $a& 5 ?HE/ $b&

a N 4)*90 b N =G*06 nab N G*;6

<a N

=G*06 A=G*06'$G*;6Q4)*90&B (41.62) P (80.25)0 # 0$G*;6&Q(41.62)Q(80.25)

0

<a N

2>26 2)90

<a N)*04 <b N ) # <a <b N )')*04 N 'G*04

92

CA"C("ATI&) &F P&RTF&"I& RIS</

RP N

a0Q<a0 P b0Q<b0 P 0nabQaQbQ<aQ<b

CA"C("ATI&) &F P&RTF&"I& RIS< &F =IPR& F &T-ER C&MPA)IES/ i* <ipro $a& 5 .TC $b&H

a N 22*G> b N 69*G> N 0D2 N )D2 Nab N G*>=

RP N $0D2&0$4>*6;&0P$1/3)0$G*6)*64&0P0$4>*6;&(51.54)Q(0.98)Q$0D2&Q$)D2&

=R 06G6
ii*

N 6G*G4
?HE/ $a& 5 HEROHON(, $b&H

a N =G*06 b N ;2*G> N 0D2 N )D2 nab N G*=0

$0D2&0$=G*06&0P$)D2)0$;2*G>&0P0$=G*06&(73.09)Q(0.82)Q$0D2&Q$)D2&

RP

=R 69)2

N ;4*>)
94

iii*

<.PRO $a& 5 (R RE((- $b&H

a N 4)*90 b N 09*GG N 0D2 N )D2 nab N G*42

RP N $0D2&0$4)*90&0P$)D2)0$09*GG&0P0$4)*90&(26.00)Q(0.43)Q$0D2&Q$)D2&

=R 94;
iC*

N 06*42
.TC $a& 5 ?HE/ $b&H

a N 6)*64 b N =G*06 N )D2 N 0D2 nab N G*9=

RP N $)D2&0$6)*64&0P$0D2)0$=G*06&0P0$6)*64&(80.25)Q(0.68)Q$0D2&Q$)D2&

=R 4424
C*

99*6=

,CC $a& 5 ?HE/ $b&H

a N 4>*6; b N =G*06 N 0D2 N)D2 nab N G*>0

RP N $0D2&0$4>*6;&0P$)D2)0$=G*06&0P0$4>*6;&(80.25)Q(0.92)Q$0D2&Q$)D2&
96

=R 4;=9

N 9>*)=

.* Ci*

C,/C1/,T.ON O% PORT%O/.O R.3: O% ,CC 5 OTHER CO+P,N.E3 ,CC$a& 5 HEROHON(,$b&H

a N 4>*6; b N ;2*G> N 0D2 N )D2 nab N G*;=

RP N $0D2&0$4>*6;&0P$)D2)0$;2*G>&0P0$4>*6;&(73.09)Q(0.78)Q$0D2&Q$)D2&

=R 0>44
Cii*

N 64*06
,CC $a& 5 <.PRO $b&H

a N 4>*6; b N 09*GG N 0D2 N )D2 nab N G*G=

RP N $0D2&0$4>*6;&0P$)D2)0$09*GG&0P0$4>*6;&(26.00)Q(0.08)Q$0D2&Q$)D2&

=R )009
Ciii*

N 26*G)
,CC $a& 5 (R RE((- $b&H

a N 4>*6;
99

b N 4)*90 N 0D2 N )D2 nab N G*;4

RP N $0D2&0$4>*6;&0P$)D2)0$4)*90&0P0$4>*6;&(41.62)Q(0.74)Q$0D2&Q$)D2&

=R )>;0
i@*

N 44*4G
.TC $a& 5 HEROHON(, $b&H

a N 6)*64 b N ;2*G> N 0D2 N )D2 nab N G*;G

RP N $0D2&0$6)*64&0P$)D2)0$;2*G>&0P0$6)*64&(73.09)Q(0.70)Q$0D2&Q$)D2&

=R 0>4>
..* @*

N 64*2G

C,/C1/,T.ON O% PORT%O/.O R.3: O% (R RE((- 5 OTHER CO+P,N.E3 (RRE((- $a& 5 .TC $b&H

a N 4)*90 b N 6)*64 N )D2 N 0D2 nab N G*;>

9;

RP N

$)D2&0$4)*90&0P$0D2)0$6)*64&0P0$4)*90&(51.54)Q(0.79)Q$0D2&Q$)D2&

=R 0)26
@i*

N 49*0
(RRE((- $a& 5 HEROHON(, $b&H

a N 4)*90 b N ;2*G> N )D2 N 0D2 nab N G*42

RP N

$)D2&0$4)*90&0P$0D2)0$;2*G>&0P0$4)*90&(73.09)Q(0.43)Q$0D2&Q$)D2&

=R 2);0
@ii*

N 69*20
(RRE((- $a& 5 ?HE/ $b&H

a N 4)*90 b N =G*06 N )D2 N 0D2 nab N G*=;=

RP N $)D2&0$4)*90&0P$0D2)0$=G*06&0P0$4)*90&(80.25)Q(0.75)Q$0D2&Q$)D2&

=R 4)>;
III8 @iii*

N 94*;=

CA"C("ATI&) &F P&RTF&"I& RIS< &F ITC F &T-ER C&MPA)IES .TC $a& 5 <.PRO $b&H

a N 6)*64
9=

b N 09*GG N 0D2 N )D2 nab N 'G*G0

RP N

$0D2&0$6)*64&0P$)D2)0$09*GG&0P0$6)*64&(26.00)Q(26.00)Q$0D2&Q$)D2&

=R )0=)
@iC*

N 26*;>
HEROHON(, $a& 5 <.PRO $b&H

a N ;2*G> b N 09*GG N 0D2 N )D2 nab N G*0G

RP N

$0D2&0$;2*G>&0P$)D2)0$09*GG&0P0$;2*G>&(26.00)Q(0.20)Q$G*9;&Q$G*22&

=R 0949 N 6)*44

.7*

C,/C1/,T.ON O% PORT%O/.O R.3: O% ?HE/ $a& 5<.PRO $b&

a N =G*06 b N 09*GG N0D2

9>

N)D2 nab N 'G*0)

RP N

$0D2&0$=G*06&0P$)D2)0$09*GG&0P0$=G*06&(26.00)Q(0.21)Q$0D2&Q$)D2&

=R 0;;=

N 60

CONCL(SION

%or any inCest ent the factors to be considered are the return on the inCest ent and the risk associated with that inCest ent* (iCersification in the inCest ent into different assets can reduce the risk* There fore by followin! odern portfolio theore E risk can be reduced for a re"uired return

;G

)I)ILOGRAP*Y
4.SEC(RITY ANALYSIS AND PORTFOLIO MANAGEMENT 5(onald*E*%isherE Ronald*J*Jordan 2.INVESTMENTS '<illia *%*3harpeE!ordonEJ ,le@ander and Jeffery*7*?aily 2*PORTFOLIOMANAGEMENT '3tron! R*,

;)

+E) REFERENCES

http;DDwww*nseindia*co http;DDwww*bseindia*co http;DDwww*econo icti es*co http;DDwww*answers*co

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