Section C (4 Mark)
A portfolio consists of 3 securities.

What is the standard deviation of the portfolio?

Section B (2 Mark)
Which of the following statements is / are correct?

Section C (4 Mark)
Read the senario and answer to the question.
Mr. Mehta buys machinery for Rs. 80000 which is to be replaced after a period of two years. The replacement cost at that time will be Rs. 90000. As a Chartered Wealth Manager advice Mr. Mehta now what he should do after two year for the replacement of the said machinery?

Section B (2 Mark)
The ____________ provides an unequivocal statement on the expected return-beta relationship for all assets, whereas the _____________ implies that this relationship holds for all but perhaps a small number of securities.

Section A (1 Mark)
Riskier stocks have