Calculating Risk and Return of Investments in a Portfolio (Part A)
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The case is structured to achieve the following teaching objectives:
- Learn about the concept of the Marginal Investor.
- Understand the Risks for a Marginal Investor.
- Calculate the historical returns of the companies in which Shangvi invested.
- Calculate Variance and Standard Deviation of the three companies and find out the riskier investment for Shangvi.
- Understand the benefit of diversification in a portfolio.
- Understand Diversifiable and Non diversifiable risk and discuss how diversification reduces firm specific or unsystematic risk.
- Calculate Covariance and Correlation and interpret the meaning in relation of the portfolio of Shangvi.
- Calculate minimum variance for the portfolio.
|DILIP SHANGVI: THE SELF-MADE BILLIONAIRE|
Dilip Shangvi, Risk and Return, Portfolio, Minimum Variance Portfolio, Diversification, Unsystematic Risk, Suzlon, Natco Pharma, Sun Pharma