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?

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

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

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

If I have a company whose beta is .54,the present yield to maturity on U.S. government bonds maturing in one year (currently about 4.5% annually) and an assessment that the market risk premium is 6.5%, using the CAPM equation,what is the present cost of equity of my company?
If I have 2 companies, A and B, the beta of A is .

You hold a diversified portfolio consisting of a $5,000 investment in each of 20 different common stocks. The portfoliobeta is equal to 1.15. You have decided to sell one of your stocks, a lead mining stock whose b is equal to 1.0, for $5,000 net and to use the proceeds to buy $5,000 of stock in a steel company whose b is equ

A portfolio manager has a $10 million portfolio, which consists of $1 million invested in 10 separate stocks. The portfoliobeta is 1.2. The risk-free rate is 5% and the market risk premium is 6%.
____ 6. What is the portfolio's required return?
a. 9.85%
b. 12.00%
c. 12.20%
d. 12.35%
e. 6.20%
____ 7. The

My portfolio is invested equally in five stocks (that is, each stock in the portfolio has a weight of 0.20) and has a required return of 9.4%. The risk-free rate is 5% and the market risk premium is 4%. What is the portfoliobeta? Assume the my portfolio is on the SML.
Choose 1 of the following:
A. 0.950
B. 1.400
C. 0.800

Your portfolio is diversified. It has an expected return of 10.0% and a beta of 1.10. You want to add 200 shares of Tundra Corporation at $30 a share to your portfolio. Tundra has an expected return of 14.0% and a beta of 1.50. The total value of the investor's current portfolio is $18,000.
a. Calculate the expected retur