Question

a. Calculate the portfolio beta on the basis of the original cost figures (please show how)

b. Calculate the percentage return of each asset in the portfolio for the year.

c. Calculate the percentage return of the portfolio on the basis of the original cost, using income and gains during the year

(Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Yearly income $1,000 Value today Asset Cost Beta at purchase A $35,000 0.81 $35,000 $39,000 $38,500 S38.000 0.92 $1,300 S32,000 S16,000 1.42 S0 $350 D 1.37 $16,500

Answer 1

A. Beta of the portfolio = 1.08
B. Individual stock returns:
A: 2.86%
B: 6.05%
C: 20.31%
D: 5.31%
C. Portfolio return = 8.81%

Portfouto peta a Individual Retuens Por touro feraan peta Cast weigws Asset Dx A 350uo 121,0v0 35,000 0.81 D.2341 0.289 35+1-35 = २.85+/. O. 8257y 35 38০ O.2 889 O.314 0.9 2 39+ 1.3-38 1-90051 6.052y. 38 32,000 O.3t6 3 O.269 I42 38.5-32 20.31. 5.38 28/. 32 O-1 38 1-3 + 16-5+o-35- 16 o.1808 o.t012y 1-080 531 121,000 To tal