Calculating Risk and Return of Investments in a Portfolio (Part A)

On February 14, 2015, Dilip Shangvi (Shangvi), founder of Indian pharmaceutical giant Sun Pharmaceutical Industries Ltd. (Sun Pharma), announced that he would buy a 23 percent stake in Pune-based Suzlon Energy Ltd. (Suzlon) for Rs 18 billion . Shangvi held a 60.8 percent stake in Sun Pharma and had received more than Rs 12 billion as dividend between 2010 and 2015. He had earlier invested his personal wealth in several companies like Bio- Light Sciences , where he bought an 11 percent stake for Rs 140 million, and Natco Pharma Limited (Natco Pharma) , in which he bought a 3.5 percent stake for Rs 250 million in 2011. His investment in Suzlon was the largest he had ever made and the only one in a company which was not in the pharmaceutical industry....