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(b) A portfolio consists of securities as follows: Average buying Current market price (RM) 4.00 8.00 1.20 Security Beta Units price (RM) 4.80 9.60 30,000 1.3 1.2 A B 10,000 80,000 200,000 150,000 3.20 0.30 1.3 1.5 0.50 E 1.6 0.20 0.10 Required: Calculate the profit/loss (in RM) for the portfolio above.

(b) A portfolio consists of securities as follows: Average buying Current market price (RM) 4.00 8.00 1.20 Security Beta Units price (RM) 4.80 9.60 30,000 1.3 1.2 A B 10,000 80,000 200,000 150,000 3.20 0.30 1.3 1.5 0.50 E 1.6 0.20 0.10 Required: Calculate the profit/loss (in RM) for the portfolio above.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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(ii) Advise on the changes to be made if you would like to rebalance your portfolio according to the following weightings: Security A B Weighting 30 20 20 D 15 E 15 (i11) Assume that the capital market line is as follows: 4,00 + 13,58 Comment on whether each of the securities is overvalued or undervalued if returns of the securities are as follows: Security Return 20 A B 20 C 50 D E 25 31
Transcribed Image Text:(ii) Advise on the changes to be made if you would like to rebalance your portfolio according to the following weightings: Security A B Weighting 30 20 20 D 15 E 15 (i11) Assume that the capital market line is as follows: 4,00 + 13,58 Comment on whether each of the securities is overvalued or undervalued if returns of the securities are as follows: Security Return 20 A B 20 C 50 D E 25 31
(b) A portfolio consists of securities as follows: Average buying Current market price (RM) 4.00 8.00 1.20 Security Beta Units 1.3 1.2 price (RM) 4.80 9.60 30,000 10,000 80,000 200,000 150,000 A 1.3 3.20 0.50 0.20 D 1.5 0.30 E 1.6 0.10 Required: Calculate the profit/loss (in RM) for the portfolio above.
Transcribed Image Text:(b) A portfolio consists of securities as follows: Average buying Current market price (RM) 4.00 8.00 1.20 Security Beta Units 1.3 1.2 price (RM) 4.80 9.60 30,000 10,000 80,000 200,000 150,000 A 1.3 3.20 0.50 0.20 D 1.5 0.30 E 1.6 0.10 Required: Calculate the profit/loss (in RM) for the portfolio above.
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