(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
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
Related questions
Question
Please solve b
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
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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