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    Rate of Return-Investment Theory

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    Scenario:
    Roger has just been hired as chief portfolio officer of Bear United Capital. As part of this new position, he has been asked to assemble a model portfolio from a set of assets. The assets in the model portfolio include the following:

    Please see attached word document for data set.

    Using the above assets from the model portfolio and their associated values, calculate the following:
    -The rate of return of the portfolio
    -The expected rate of return on the portfolio
    -Discuss your perception of the two returns and what is driving each in detail
    -Which return is a better measure of return on a portfolio, and when should you use each?

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    Roger has just been hired as chief portfolio officer of Bear United Capital. As part of this new position, he has been asked to assemble a model portfolio from a set of assets. The assets in the model portfolio include the following:
    Weight Expected Return Actual Return
    Stock A 0.2 0.05 0.09
    Stock B 0.1 0.07 0.04
    Stock C 0.25 0.12 0.14
    Stock D 0.05 0.02 0.04
    Stock E 0.1 0.04 0.01
    Stock F 0.3 0.35 -0.02

    Using the above assets from the model portfolio and their associated values, calculate the following:
    • The rate of return of the portfolio
    Weight Actual Return Weighted Return - ...

    Solution Summary

    The rate of return-investment theories are examined.

    $2.19

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