WA = 70.23 [70.23- (0.79*47.3)] 2 + 2 2(0.79)** – WA = 2,308.5 1,921.43 WA = 1.20 Wb = 1 Wa – Wb = 1- 1.20 = -0.20 CALCULATION OF PORTFOLIO RISK: RP + (b*Wb)2 + 2*a*b*Wa*Wb*nab = (a*Wa)2 CALCULATION OF PORTFOLIO RISK OF WIPRO & OTHER COMPANIES: WIPRO (a) & DR.REDDY (b): = 22.86 a b = 46.66 Wa = 0.78 Wb = 0.23 Nab = -0184 RP = (22.86*0.78.)2+(46.66*0.23) 2(22.86)(46.66)(0.78(0.23)(-0.184) 355.6 18.86%
WA = 70.23 [70.23- (0.79*47.3)] 2 + 2 – 2(0.79)** WA = 2,308.5 1,921.43 WA = 1.20 Wb = 1 – Wa Wb = 1- 1.20 = -0.20 CALCULATION OF PORTFOLIO RISK: RP = (a*Wa)2 + (b*Wb)2 + 2*a*b*Wa*Wb*nab CALCULATION OF PORTFOLIO RISK OF WIPRO & OTHER COMPANIES: WIPRO (a) & DR.REDDY (b): a = 22.86 b = 46.66 Wa = 0.78 Wb = 0.23 Nab = -0184 RP = (22.86*0.78.)2+(46.66*0.23) 2(22.86)(46.66)(0.78(0.23)(-0.184) 355.6 18.86%
a-study-on-risk-management.docx