Portfolio Management- Illustration 26

AFM

Hello Sir, In this problem, we have assumed GOI bonds return as risk free rate however the beta value is given in the question as 0.01 which is not zero as of a risk free asset. Also as you mentioned, ICAI answer is confusing as they have computed Market Portfolio using the securities given in the question. How do we approach these types of questions in the exam?

Suresh Avinash

CA Final

★ 3K+

13-Sep-23 19:25

567

Answers (1)

Unlikely that you will get such questions in exam going by recent trend. Even if they come - take most reasonable assumption and move forward.

Sriram Somayajula

Admin

14-Sep-23 07:41