Dhruv Malhotra Assignment 3 CAPM
Dhruv Malhotra Assignment 3 CAPM
Dhruv Malhotra Assignment 3 CAPM
Portfolio Risk
154)
le still having enough exposure for consistent returns.
154)
nment: High risk, high return
a Motors is the most volatile stock in the portfolio. This means it can yield higher returnsin an upmarket but will also introduce greater ris
his stock could offer potential for significant gains.
2%
highest-risk, highest-return stock, assigning a higher weight (20-22%) makes sense for investors willing to take on more risk. This allocation
rowth in bullish markets, while still keeping risk in check with other safer assets.
urn
Coefficient of Variance Infosys
23.9387198933551 Wipro
48.0461482936868 Coal
-252.986302718564 Tata Motors
48.3926911723893 Nestle
18.2711785649215
arket but still offers potential for growth. It's a good middle-ground
ock for risk-averse investors. Though it may not yield the highest
ble weight to lower the overall risk of the portfolio. This allows for
d higher returnsin an upmarket but will also introduce greater risk. For
kes sense for investors willing to take on more risk. This allocation
assets.
all risk of the portfolio. A higher weight helps mitigate the risk from
ation.
Covariance Matrix
Infosys Wipro Coal
0.03% 0.01% 0.02%
0.01% 0.03% 0.01%
0.02% 0.01% 0.04%
0.02% 0.01% 0.01%
0.01% 0.01% 0.01%
Correlation Matrix
Infosys Wipro Coal
1
0.092215628764 1
0.2662508098 0.137042572650116 1
0.328136984284 0.127312501613837 0.379858485324282
0.234871856082 0.114741794054022 0.330409308397967
1
0.351531167162952 1
1.33%
1.28%