Indian Institute of Foreign Trade 2009 Solved Paper

Question : 9 of 122

Marks: +1, -0

Ms. Hema invested Rs. 10.00 lakhs in fund Gama in the beginning of the period. What will be the value of the investment at the end of 1 year period?

Approximately Rs. 10.40 lakhs
Approximately Rs. 10.95 lakhs
Approximately Rs. 11.24 lakhs
Approximately Rs. 11.38 lakhs

Validate

Solution:

As the numbers are far apart we can approximate the money allocation data to the nearest multiple of 0.5. The money allocation data can be approximated as below.

SI.No	Sectors	Money Allocation			Sectoral Return
SI.No	Sectors	Alpha	Beta	Gama	Sectoral Return
1	Automobiles	1.50	6.00	0.00	5%
2	Chemicals	3.00	2.00	5.00	12%
3	Communication	7.00	5.00	4.00	-5%
4	Construction	1.50	0.00	6.00	15%
5	Diversified	7.50	7.00	9.50	11%
6	Energy	10.00	17.50	20.50	21%
7	Engineering	9.00	11.00	15.50	8%
8	Financial	26.00	24.00	17.00	6%
9	FMCG	14.50	2.00	2.00	25%
10	Health Care	6.00	0.00	3.00	18%
11	Metals	0.00	11.00	10.00	-8%
12	Services	4.50	7.00	4.00	10%
13	Technology	5.50	7.50	3.50	-2%
14	Textiles	4.00	0.00	0.00	17%
		100.00	100.00	100.00

Total return on investing Rs. 100 in fund Gama

=5∗1.12+4∗.95+6∗1.15+9.5∗1.11+20.5∗1.21+15.5∗1.08+17∗1.06+2∗1.25+3∗1.18+10∗.92+4∗1.1+3.5∗.98=Rs.109.48

Hence, total return of an investment of 10 lakhs in fund Gama after a year

=109.48/100×10=10.948

lakhs

≈10.95

lakhs
Hence, option B is the correct answer

Go to Question:

Prev Question

Next Question