Jamie Peters invested $100,000 to set up the following portfolio 1 year ago. (see attachment for table).
a. Calculate the portfolio beta on the basis of the original cost figures.
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 original cost, using income and gains during the year.
d. At the time Jamie made his investments, investors were estimating that the market return for the coming year would be 10%. The estimate of the risk-free rate of return averaged 4% for the coming year. Calculate an expected rate of return for each stock on the basis of its beta and the expectations of market and risk-free returns.
e. On the basis of the actual results, explain how each stock in the portfolio performed relative to those CAPM-generated expectations of performance. What factors could explain these differences?

*see attached for table*
You own a portfolio consisting of the following stocks:
Multiple Choice - calculate expected portfolioreturnandportfoliobeta:
A. Expected portfolioreturn 10.6% andportfoliobeta .90.
B. Expected portfolioreturn 15.5% andportfoliobeta 1.20.
C. Expected portfolioreturn 17.8

You have a portfolio with a total value of $9,000 which has an expected return of 12% with a beta of 1.2. You plan to buy $1,000 of a stock with an expected return of 20% and a beta of 2.0. What will be the expected returnandbeta of the portfolio after purchasing the new stock?
a) 12.0%, 1.2
b) 12.8%, 1.28
c) 13.2%, 1.4

Consider the following information about a five stock portfolio:
Stock Percent of PortfolioBeta
A) 20% 1.6
B) 25% 1.2
C) 10% 1.0
D) 30% 0.9
E) 15% 0.8
a. Determine the portfoliobeta for the above portfolio. Show all work.
b. Determine the expected return on the portfolio based on a Treasury bill yield of 4%

1. A Sports sales company, the Eisenhower Corporation in 1956, invested in the stock market the following:
______________________________PortfolioBetas__________________
Security $ Invested Expected ReturnBeta
Kindred Healthcare: $1,000

Work and explain in excel
Suppose you invested 35,000 in the following four stocks
invested Beta
A 14,000 0.6
B 15,000 1.1
C 16,000 1.3
D 17,000 1.8
Risk free rate is 5 percent and expected return on the market portfolio is 18 percent.
Based on CAPM, what is the expected return on the above portfolio?

Please detail calculations so that they can be posted into an excel spreadsheet and please explain how the calculations were devised.
Suppose you have invested $ 50,000 in the following four stocks:
Security Amount Invested Beta
Stock A 10,000 0.7
Stock B 15,000 1.2

If I currently hold the S&P 500, should I add either A or B to my portfolio? Why?
RoR Beta SD
Portfolio A 12.00% 0.7 12.00%
Portfolio B 16.00% 1.4 31.00%
T-Bills 5.00%
S&P 500 13.00% 18.00%
ROR: Rate of return
SD: Standard deviation

A stock has a beta of 1.25 and an expected return of 14%. A risk free asset currently earns 2.1%.
1) What is the expected return on a portfolio that is equally invested in two assets?
2) If a portfolio of the two assets has a beta of .93 what are the portfolio weights?
3) If a portfolio of the two assets has an expected ret

The market portfolio is assumed to be composed of two securities, investment X and investment Y. Determine based on the information given the average return, standard deviation and coefficient variation. Which is the better investment?
Year Return X Return Y
1997 16.5% 17.5%
1998