What is the minimum average return Venkat would have earned during the year?
Explanation:
At the time of investment, the total price of the four stocks was Rs. 400
Total expected returns = (20 + 10 + 30 + 40) = Rs. 100
Venkat would earn the minimum average return when the companies with the two lowest expected returns would give 2 times and 1.5 times their expected returns.
Thus, minimum expected returns = 20 × 1.5 + 10 × 2 + 30 + 40 = Rs.120 = 30% of initial investment
Hence, option (a).
Help us build a Free and Comprehensive Preparation portal for various competitive exams by providing us your valuable feedback about Apti4All and how it can be improved.