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Jamie Peters invested $100,000 to set up the following portfolio one year ago: Asset Cost Beta at purchase Yearly income Valuc today $20,000 0.80 $1,600 $20,000 35,000 0.95 1,400 36,000 30,000 1.50 34,500 - 15,000 1.25 375 16,500 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. ABCD

Jamie Peters invested $100,000 to set up the following portfolio one year ago: Asset Cost Beta at purchase Yearly income Valuc today $20,000 0.80 $1,600 $20,000 35,000 0.95 1,400 36,000 30,000 1.50 34,500 - 15,000 1.25 375 16,500 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. ABCD

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
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Jamie Peters invested $100,000 to set up the following portfolio one year ago: Asset Cost Beta at purchase Yearly income Valuc today $20,000 0.80 $1,600 $20,000 B 35,000 0.95 1,400 36,000 C 30,000 1.50 34,500 - D 15,000 1.25 375 16,500 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.
Transcribed Image Text:Jamie Peters invested $100,000 to set up the following portfolio one year ago: Asset Cost Beta at purchase Yearly income Valuc today $20,000 0.80 $1,600 $20,000 B 35,000 0.95 1,400 36,000 C 30,000 1.50 34,500 - D 15,000 1.25 375 16,500 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.
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