This Quiz: 10 pts poss This Question: 1 pt Portolio veturn and beta Personal Fin

Question

This Quiz: 10 pts poss This Question: 1 pt Portolio veturn and beta Personal Finance Problem Jamie Peters invested $101,000 to set up the ftolowing portlie one year ag b. Calculale the pencene of each anset in the portialio for the year Oata Table The peroertageretm for 3steRBfor he year is»% (Rord to two decrnal places ) The percentage reun for asset for the year Round to two deomal places The percentage retun for asoet D for the year Round to two decimal places Clok on the icon locaed on the top-rignt comer of the ta table below in order to copy scns int 1500 so 32.000 The percentage etum of the portlio on the bais of original cost using income and pains ug d. Al the time Jamie made his invetments investors were estmating that the market relum for the The expected rate of retum for asser Aound to two decima aces The espedted rate of retun tor asser Bound to two decimac The erected rate of reum br ameCa?% iRoundtoho denar paces Cliá to select your 37 500 PrintDone ype here to search

Explanation / Answer

As per rules I will answer the first 4 subparts of the question posted.

1. The portfolio beta is the weighted average of the betas of the stocks in the portfolio.

Total portfolio value= 23000+32000+31000+15000 = 101000

Portfolio beta=0.84*23000/101000 + 0.97*32000/101000+ 1.55*31000/101000+ 1.29*15000/101000

=1.17

2: Percentage return on Asset A= Capital gain + Income/ Initial cost

=((23000-23000)+1200)/23000

=5.22%

3. Percentage return on Asset B= Capital gain + Income/ Initial cost

=((33000-32000)+1500)/32000

=7.81%

4. Percentage return on Asset C= Capital gain + Income/ Initial cost

=((37500-31000)+0)/31000

=20.97%

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