Calculate the profit or loss for the portfolio. (b)A portfolio consists of securities as follows:Average buying| Current marketprice (RM)4.00SecurityBetaUnitsprice (RM)4.801.31.230,00010,00080,000200,000150,000A8.009.603.200.301.31.201.50.50E1.60.200.10Required:(i)Calculate the profit/loss (in RM) for the portfolio above.

The profit or loss can be determined by subtracting the purchase price of securities from the market…

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Calculate the profit or loss for the portfoli

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 21P

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Concept explainers

Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.

Question

Calculate the profit or loss for the portfolio.

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

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