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Calculation Of Average Return Of Selected Companies.

Portfolio Return:

The Expected Return on a Portfoliois computed as the weighted

average of the expected returns on the stocks which comprise the portfolio.

The weights reflect the proportion of the portfolio invested in the stocks.

This can be expressed as follows:

where,

E[Rp] = the expected return on the portfolio,

N = the number of stocks in the portfolio,

wi= the proportion of the portfolio invested in stock i, and

E[Ri] = the expected return on stock i.

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1.BHARTIA AIRTEL

YEAR P0 P1 d P1-P0 100*d+(P1-

P0)/PO

2008-09 343.30 348.60 1.543839 5.3 1.993545

2009-10 348.60 341.90 -1.92197 -6.7 -2.47331

2010-11 341.90 342.35 0.131617 0.45 0.170113

2011-12 342.35 354.00 3.40295 11.65 4.396948

2012-13 354.00 357.45 0.974576 3.45 1.24988

4.131012 5.337176

Average Return = Total Return/No.of years =1.067435

BHEL:

YEAR P0 P1 D P1-P0 100*d+(P1-

P0)/P0

2008-09 2303.55 2285.95 -0.76404 -17.6 -0.79721

2009-10 2285.95 2291.40 0.238413 5.45 0.248842

2010-11 2291.40 2296.95 0.24221 5.55 0.25278

2011-12 2296.95 2304.55 0.330874 7.6 0.345278

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2012-13 2304.55 2337.60 1.434119 33.05 1.496349

1.481576 1.546039

AVERAGE RETURN=TOTAL RETURN/NO.OF YEARS=0.309208

INFOSYS:

YEAR P0 P1 d P1-P0 100*d+(P1-

P0)/P0

2008-09 3367.9 3370.15 0.066807 2.25 0.068791

2009-10 3370.15 3376.90 0.200288 6.75 0.206231

2010-11 3376.90 3382.65 0.170275 5.75 0.175317

2011-12 3382.65 3404.90 0.657768 22.25 0.877214

2012-13 3404.90 3446.95 1.234985 42.05 1.271256

2.330123 2.598809

Average Return = Total Return/No.of years =0.519762

ITC:

YEAR P0 P1 d P1-P0 100*d+(P1-

P0)/P0

2008-09 166.90 169.90 1.797484 3 2.874466

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2009-10 169.90 169.75 -0.08829 -0.15 -0.14025

2010-11 169.75 171.20 0.854197 1.45 1.357406

2011-12 171.20 174.20 1.752336 3 2.775897

2012-13 174.20 174.55 0.200918 0.35 0.316256

4.516645 7.183775

Average Return = Total Return/No.of years =1.436755

NTPC:

YEAR P0 P1 d P1-P0 100*d(P1-

P0)/P0

2008-09 195.75 198.25 1.277139 2.5 1.929573

2009-10 198.25 197.00 -0.63052 -1.25 -0.94856

2010-11 197.00 196.50 -0.25381 -0.5 -0.38264

2011-12 196.50 197.90 0.712468 1.4 1.075047

2012-13 197.90 202.25 2.19808 4.35 3.308782

3.303357 4.982202

Average Return = Total Return/No.of years =0.99644

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ONGC:

YEAR P0 P1 D P1-P0 100*d+(P1-

P0)/P0

2008-09 1300.25 1294.75 -0.423 -5.5 0.45553

2009-10 1294.75 1299.55 0.370728 4.8 0.399361

2010-11 1299.55 1289.90 -0.74256 -9.65 -0.7997

2011-12 1289.90 1303.35 1.042716 13.45 1.123553

2012-13 1303.35 1294.60 -0.67135 -8.75 -0.72286

-0.42347 0.455884

Average Return = Total Return/No.of years =-0.091177

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RANBAXY:

YEAR P0 P1 d P1-P0 100*d+(P1-

P0)/PO

2008-09 570.70 573.25 0.44 2.55 0.523918

2009-10 573.25 574.85 0.27 1.6 0.32621

2010-11 574.85 589.95 2.62 15.1 3.082543

2011-12 589.95 589.25 -0.11 -0.7 -0.1373

2012-13 589.25 590.40 0.19 1.15 0.227408

03.41 4.022779

Average Return = Total Return/No.of years =0.804556

SAIL:

YEAR P0 P1 d P1-P0 100*d+(P1-

P0)/PO

2008-09 186.20 184.80 -0.75188 -1.4 -1.15568

2009-10 184.80 177.35 -4.03139 -7.45 -6.21287

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2010-11 177.35 176.70 -0.36651 -0.65 -0.57317

2011-12 176.70 180.15 1.952462 3.45 3.05742

2012-13 180.15 181.25 0.610602 1.1 0.949543

-2.58672 -3.93476

TOTAL RETURN=-0.78695

SBI:

YEAR P0 P1 d P1-P0 100*d+(P1-

P0)/PO

2008-09 2746.25 2755.35 0.331361 9.1 0.343427

2009-10 2755.35 2751.20 -0.15062 -4.15 -0.15608

2010-11 2751.20 2728.50 -0.82509 -22.7 -0.85508

2011-12 2728.50 2755.2 0.97856 26.7 1.014424

2012-13 2755.2 2749.65 -0.20144 -5.55 -0.20875

0.132771 0.137941

AVERAGE RETURN=TOTAL RETURN/NO.OF YEARS=0.027588

TATA MOTORS:

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YEAR P0 P1 d P1-P0 100*d+(P1-

P0)/PO

2008-09 1352.75 1306.1 -3.44853 -46.65 -3.70346

2009-10 1306.15 1301.1 -0.38663 -5.05 -0.41623

2010-11 1301.10 1268.9 -2.47483 -32.2 -2.66504

2011-12 1268.90 1273.8 0.386161 4.9 0.416594

2012-13 1273.85 1300.1 2.060682 26.25 2.22245

-3.86315 -4.14569

AVERAGE RETURN=TOTAL RETURN/NO.OF YEARS=-0.82914

*DIAGRAMATIC REPRESENTATION OF AVERAGE RETURN OF THE

COMPANIES:

S.NO COMPANY NAME AVERAGE RETURN

1 BHARATHI AIRTEL 1.067435

2 BHEL 0.309208

3 INFOSYS 0.519762

4 ITC 1.436755

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5 NTPC 0.99644

6 ONGC -0.091177

7 RANBAXY 0.804556

8 SAIL -0.78695

9 SBI 0.027588

10 TATA MOTORS -0.82914

-1

-0.5

0

0.5

1

1.5

2

AVERAGE RETURN

AVERAGE RETURN

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*CALULATION OF STANDARD DEVIATION:

1. The variance/standard deviation of a portfolio reflects not only the

variance/standard deviation of the stocks that make up the portfolio but also how

the returns on the stocks which comprise the portfolio vary together. Two measures

of how the returns on a pair of stocks vary together are the covariance and the

correlation coefficient.

The Covariancebetween the returns on two stocks can be calculated using the

following equation:

where

s12= the covariance between the returns on stocks 1 and 2,

N = the number of states,

pi= the probability of state i,

R1i= the return on stock 1 in state i,

E[R1] = the expected return on stock 1,

R2i= the return on stock 2 in state i, and

E[R2] = the expected return on stock 2.

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BHATRHIA AIRTEL:

YEAR RETURN AVERAGE

RETURN

(R-R_) (R-R_)2

2008-09 1.543839 1.067435 0.476404 0.226961

2009-10 -1.92197 1.067435 -2.98942 8.936542

2010-11 0.131617 1.067435 -0.93582 0.875755

2011-12 3.40295 1.067435 2.335515 5.45463

2012-13 0.974576 1.067435 -0.09286 0.008623

4.131012 15.50251

Variance=(R-R_)2/N=3.100502

STANDARD DEVIATION = SQUARE ROOT (VARIANCE)=1.76082

BHEL:

YEAR RETURN AVERAGE

RETURN

(R-R_) (R-R_)2

2008-09 -0.76404 0.309208 -1.07325 1.511861

2009-10 0.238413 0.309208 -0.0708 0.005012

2010-11 0.24221 0.309208 -0.067 0.004489

2011-12 0.330874 0.309208 0.021666 0.000469

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2012-13 1.434119 0.309208 1.124911 1.265425

1.481576 2.427256

Variance=(R-R_)2/N=0.485451

STANDARD DEVIATION = SQUARE ROOT (VARIANCE)=0.686743

INFOSYS:

YEAR RETURN AVERAGE

RETURN

(R-R_) (R-R_)2

2008-09 0.066807 0.519762 -0.45296 0.205168

2009-10 0.200288 0.519762 -0.31947 0.102064

2010-11 0.170275 0.519762 -0.34949 0.122141

2011-12 0.657768 0.519762 0.138006 0.019046

2012-13 1.234985 0.519762 0.715223 0.511544

2.330123 0.959963

Variance=(R-R_)2/N=0.191993

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STANDARD DEVIATION = SQUARE ROOT (VARIANCE)=0.438170

ITC:

YEAR RETURN AVERAGE

RETURN

(R-R_) (R-R_)2

2008-09 1.797484 1.436755 0.360729 0.130125

2009-10 -0.08829 1.436755 -1.52505 2.325762

2010-11 0.854197 1.436755 -0.58256 0.339374

2011-12 1.752336 1.436755 0.315581 0.099591

2012-13 0.200918 1.436755 -1.23584 1.527293

4.516645 4.422146

Variance=(R-R_)2/N=0.884429

STANDARD DEVIATION = SQUARE ROOT (VARIANCE)=0.940440.

NTPC:

YEAR RETURN AVERAGE

RETURN

(R-R_) (R-R_)2

2008-09 1.277139 0.99644 0.280699 0.078792

2009-10 -0.63052 0.99644 -1.62696 2.646999

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2010-11 -0.25381 0.99644 -1.25025 1.563125

2011-12 0.712468 0.99644 -0.28397 0.08064

2012-13 2.19808 0.99644 1.20164 1.443939

3.303357 5.813495

Variance=(R-R_)2/N=1.162699

STANDARD DEVIATION = SQUARE ROOT (VARIANCE)=1.078285.

ONGC:

Average Return = Total Return/No.of years =-0.091177

YEAR RETURN AVERAGE

RETURN

(R-R_) (R-R_)2

2008-09 -0.423 0.091177 -0.51418 0.264378

2009-10 0.370728 0.091177 0.279551 0.078149

2010-11 -0.74256 0.091177 -0.83374 0.695117

2011-12 1.042716 0.091177 0.951539 0.905426

2012-13 -0.67135 0.091177 -0.76253 0.581447

- 2.524518

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0.42347

Variance=(R-R_)2/N=0.504518

STANDARD DEVIATION = SQUARE ROOT (VARIANCE)=0.7710499.

RANBAXY:

YEAR RETURN AVERAGE

RETURN

(R-R_) (R-R_)2

2008-09 0.44 0.804556 -0.36456 0/132901

2009-10 0.27 0.804556 -0.53456 0.28575

2010-11 2.62 0.804556 1.815444 3.295837

2011-12 -0.11 0.804556 -0/91456 0.836413

2012-13 0.19 0.804556 -0.61456 0.377679

3.41 4.92858

Variance=(R-R_)2/N=0.985716

STANDARD DEVIATION = SQUARE ROOT (VARIANCE)=0.99283.

SAIL:

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YEAR RETURN AVERAGE

RETURN

(R-R_) (R-R_)2

2008-09 -0.75188 -0.78695 0.03507 0.00123

2009-10 -4.03139 -0.78695 -3.24444 10.52639

2010-11 -0.36651 -0.78695 0.42044 0.17677

2011-12 1.952462 -0.78695 2.739412 7.504378

2012-13 0.610602 -0.78695 1.397552 1.953152

-2.58672 20.16192

Variance=(R-R_)2/N=4.032384

STANDARD DEVIATION = SQUARE ROOT (VARIANCE)=2.00807.

SBI:

YEAR RETURN AVERAGE

RETURN

(R-R_) (R-R_)2

2008-09 0.331361 0.027588 0.303773 0.092278

2009-10 -0.15062 0.027588 -0.17821 0.031758

2010-11 -0.82509 0.027588 -0.85268 0.72706

2011-12 0.97856 0.027588 0.950972 0.904348

2012-13 -0.20144 0.027588 -0.22903 0.052454

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0.132771 1.807897

Variance=(R-R_)2/N=0.361579

STANDARD DEVIATION = SQUARE ROOT (VARIANCE)=0.601314.

TATA MOTORS:

YEAR RETURN AVERAGE

RETURN

(R-R_) (R-R_)2

2008-09 -3.44853 -0.82914 -2.61939 6.861204

2009-10 -0.38663 -0.82914 0.44251 0.195815

2010-11 -2.47483 -0.82914 -1.64569 2.708296

2011-12 0.386161 -0.82914 1.215301 1.476957

2012-13 2.060682 -0.82914 2.889822 8.531071

-3.86315 19.59334

Variance=(R-R_)2/N=3.918668

STANDARD DEVIATION = SQUARE ROOT (VARIANCE)=1.979562.

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*DIAGRAMATIC REPRESENTATION OF STANDARD DEVIATIONOF THE

COMPANIES:

S.NO COMPANY NAME STANDARD

DEVIATION

1 BHARATHI AIRTEL 1.76082

2 BHEL 0.686743

3 INFOSYS 0.438170

4 ITC 0.940440.

5 NTPC 1.078285

6 ONGC 0.7710499.

7 RANBAXY 0.99283.

8 SAIL 2.00807

9 SBI 0.601314.

10 TATA MOTORS 1.979562.