1. Mr. X subscried shares in ABC Co. Ltd at a price of Rs. 100 each.

Company paid dividend of

Rs. 20 after one year. Compute return on investment. What would be your opinion ifMr.X
paid a premium of Rs. 10 on subscription of these shares and shares are fully paid up.
2. Mr. X bought 10 shares in Swastik Co. Ltd at price of Rs. 150 per share. After a year, company
declare dividend at Rs. 20 per share. Mr. X wants to sell these shares and the realisable value
of each share is Rs. 180. Calculate total return on the security along with income and capital
yield.
3. Mr. X extracts price of shares in ABC Co. Ltd. From stock exchange indices over the last nine
years as given below: calculate the return and average return.

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019
Price 140 150 162 152 170 200 188 195 205
4. Mr. X submits you the details on the dividend and value of shares in PQR Co. Ltd for a period
of ten years starting from 2010, below:

Year Price Dividend

2010 135 15
2011 175 18
2012 210 20
2013 180 32
2014 190 20
2015 200 14
2016 215 14
2017 220 8
2018 200 16
2019 220 20
Compute total return on the basis of above information.

5. Compute the return for Mr. X who has made investment in PQR Ltd. And provides you the
following data on the basis of arithmetic and geometric mean.

Year Share price

2015 210
2016 250
2017 323
2018 386
2019 455
6. An investor expects future dividend from his investments in a company, and probability
associated with the distribution of dividend at the expected level is given below.
Compute expected return and risk from such investments.

Possible 40 30 35 52 45
return
Probability 0.20 0.30 0.20 0.15 0.15
7. The expected returns of last five years are provided below. Compute the expected risk on
these retruns.

Year Return
1 50
2 70
3 80
 4 100
5 90
8. An investor has made an investment in shares in X Co. Ltd., face value of share is Rs. 120
including a premium og Rs. 20. From the last 5 years, he is recording the amount of dividend
paid by the company and change in price of the share is as follows:

Year 2014 2015 2016 2017 2018

Dividend 25 20 10 0 15
Share Price 150 160 185 200 175
From the above information, compute the total yield on his investment.
9. Mr. X bought 10 shares in ABC Ltd. At a price of Rs. 240 in 2012. The share price at the end
of each year is given below. Company is making a dividend of Rs. 15 per share every year.

Year 2019 2018 2017 2016 2015 2014 2013

Share 410 390 385 390 310 280 265
Price
Compute
Average return using arithmetic mean and geometric mean method
Variance and standard deviation of the returns.
10. From the following information, calculate the expected return and risk of the investment.

Probable return Probability of occurrence

34 0.32
21 0.52
23 0.25
10 0.90
9 0.95