Question

Practice Test Excel Data Review View Help Autoane - Tile Home Insert Page Layout Formulas Calibri 11 -A A BIU--GA- ACROBAT Share PX 2 Wrap Text D E 2.29 4 Merge Center %69 I Conditional Formatting Formatas Table Insert Delete Format Call Styles o Sort Find Fan-Select- 1 Table 1. Average Return and Beta 7 Total holding return 7 Table 2 Portfolio A Information • stock investment million USD 11 (5 points) Based on Table 1 and table 2 infom turn for your portfolio A. (put, say, 12.11% in your answer) 14 Tables Portfolio Information 15 Stock 16 Weight in portfolio 151520620 18 6 points) Based on Table and table 3 information, find Beta for portfolio Data Data: 20 Data Date Sheet Data Datab Data Data? . . Type here to search

Answer 1

Answer:

As required Percentage Return on Portfolio A and Beta of Portfolio B are calculated and given below:

- I - Table 1: Average Return and Beta Stock Total holding return Beta 1 14% 1 ... 2 20% 2 3 12% 1.5 4 20% 2 5 60% 2.5 Table 2. Portfolio A information Stock Investment (million USD) 1 200 2 300 3 600 Percentge Return on Portfolio A 14.55% Table 3. Portfolio B information Stock Weight in portfolio Beta of Portfolio B 1.85

For formulas, the image of above excel with 'show formula' is given below:

IcIDE FI 1 Table 1: Average Return and Beta 2 Stock 3 Total holding return 4 Beta 2 0.2 2 3 0.12 1.5 4 0.2 2 5 0.6 2.5 5 7 Table 2. Portfolio A information 8 Stock 9 Investment (million USD) 10 11 Percentge Return on Portfolio A 300 600 =B3*B9/($B$9+$C$9+$D$9)+C3*C9/($B$9+$C$9+$D$9)+D3*D9/($B$9+$C$9+$D$9) 13 14 Table 3. Portfolio B information 15 Stock 16 Weight in portfolio 17 18 Beta of Portfolio B 2 3 4 5 0 15 10 2 =B4*B16+C4*C16+D4*D16+E4*E16+F4*F16