- The document describes an investment portfolio consisting of Bharti Airtel, Infosys, L&T, Reliance, and State Bank of India, making up 20%, 20%, 30%, 15%, and 15% of the portfolio respectively. - It provides the returns of each stock and the portfolio from May 14, 2009 to June 5, 2009 and compares it to historical and Sensex returns. - Tables show the efficient portfolio allocation across a range of 0.1 to 0.4 and the efficient frontier. Additional ratios like Sharpe, Treynor, and Jensen's Alpha are provided. - The annualized market return is 522% while the risk free rate is 7%,

1. Investment Management
Anil Kumar Yadav
Ashok Pershad
Dhiraj Gaur
Gaurav Bansal
Mukul Verma
Manoj Aggarwal
Ritesh Gupta

2. Portfolio Constituents
 Bharti Airtel – 20%
 Infosys Technologies – 20%
 L&T – 30%
 Reliance – 15%
 State Bank of India – 15%

3. Portfolio Details (Contd)
 Range of Study - 14/05/2009 to 05/06/2009
 Historical range – 21/05/2007 to 05/06/2009
 Diversification into heterogeneous sectors

4. Returns of Stocks
Reliance Bharti Infosys SBI L&T
Return 0.10 % 0.05% 0.01 % 0.24% 0.07%
Simple
Avg
26% -3% -13% 35% -13%
Sensex 0.04%
Simple
Avg
4%

5. Efficient Portfolio
0.1 0.2 0.3 0.4
Reliance
Industries 22% 41% 38.8542% 36.9426% 35.0309% 33.1193%
Bharti
Airtel 19% 12% 12.4762% 13.1956% 13.9150% 14.6344%
Infosys
technologies 36% 17% 18.4277% 20.3404% 22.2531% 24.1658%
State Bank
of India 17% 28% 27.2616% 26.1108% 24.9600% 23.8092%
Larsen &
Toubro 7% 3% 2.9802% 3.4106% 3.8409% 4.2713%
Return 0.00080926 0.0012 0.00116093 0.001122 0.001083 0.001044
Varience 0.00068715 0.000926 0.00089511 0.000866 0.000838 0.000811
SD 0.02621349 0.030434 0.02991847 0.029421 0.028943 0.028485

6. Efficient Frontier

7. Name of
Company
Today's
Price
Investment
%
Amount
Invested -
Proposed
No of
Shares
Bought
Amount
Invested -
Actual
5/6/09 Price Diff Gain/Loss % Return
Reliance
Industries 1908.95 20% 200000 105 200439.8 2212.75 303.8 31899
Bharti
Airtel 764.65 20% 200000 262 200338.3 826.75 62.1 16270.2
Infosys
technologie
s 1567.2 30% 300000 191 299335.2 1698.9 131.7 25154.7
State Bank
of India 1267.35 15% 150000 118 149547.3 1817.65 550.3 64935.4
Larsen &
Toubro 946.4 15% 150000 158 149531.2 1519 572.6 90470.8
TOTAL 100% 1000000 834 999191.8 228730.1 22.892%
Varience 0.002574501
SD 0.05073954

8. RATIOS
RATIOS
SHARPE'S RATIO 4.45%
TREYNOR RATIO 21.57%
JENSEN'S ALPHA 29.87%

9. Name of
Company
Today's
Price
Investmen
t %
Amount
Invested -
Proposed
No of
Shares
Bought
Amount
Invested -
Actual
5/6/09
Price Diff Gain/Loss % Return
Reliance 1908.95 33.119% 331193 173 330248.4 2212.75 303.8 52557.4
Bharti 764.65 14.634% 146344 191 146048.2 826.75 62.1 11861.1
Infosys 1567.2 24.166% 241658 154 241348.8 1698.9 131.7 20281.8
SBI 1267.35 23.809% 238092 188 238261.8 1817.65 550.3 103456.4
L&T 946.4 4.271% 42713 45 42588 1519 572.6 25767
TOTAL 100% 1000000 751 998495.1 213923.7 21.425%
Name of
Company
Today's
Price
Investmen
t %
Amount
Invested -
Proposed
No of
Shares
Bought
Amount
Invested -
Actual
5/6/09
Price Diff Gain/Loss % Return
Reliance 1908.95 20% 200000 105 200439.8 2212.75 303.8 31899
Bharti 764.65 20% 200000 262 200338.3 826.75 62.1 16270.2
Infosys 1567.2 30% 300000 191 299335.2 1698.9 131.7 25154.7
SBI 1267.35 15% 150000 118 149547.3 1817.65 550.3 64935.4
L&T 946.4 15% 150000 158 149531.2 1519 572.6 90470.8
TOTAL 100% 1000000 834 999191.8 228730.1 22.892%

10. Annualized Market Return
Net Annualized Return = 522%
Risk Free Rate = 7%
Net Annualized Return = 515%

11. Conclusion
 Returns from the efficient portfolio and actual
portfolio are quite close and hence the
securities distribution in our portfolio is close
to the most OPTIMAL one. 