Discussion

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).

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