Jamie Wong is thinking of building an investment portfolio containing two stocks, H and G. The dividend income and historical share price data over the last 5 years, 2018 - 2022, for each of these stocks are shown in the following table. T-bill return is 3% and the average return on the S&P 500 Index over the last 5 years is 12% H G Beta 1.9; Proportion = 60% Beta 1.4; Proportion = 40% Year Dividend Share Price Beginning Ending Dividend Share Price Beginning Ending 2018 $2.60 $23.00 $28.00 $2.00 $39.00 $41.00 2019 $3.10 $28.00 $31.00 $2.20 $41.00 $37.00 2020 $3.70 $31.00 $38.00 $2.20 $37.00 $44.00 2021 $4.30 $38.00 $32.00 $2.70 $44.00 $52.00 2022 $4.60 $32.00 $33.00 $3.70 $52.00 $58.00 The coefficient of variation (CV) for the 1 point portfolio is Your answer The expected rate of return (CAPM) for 1 point the portfolio is Your answer The standard deviation of returns for 1 point stock G over the period is
Jamie Wong is thinking of building an investment portfolio containing two stocks, H and G. The dividend income and historical share price data over the last 5 years, 2018 - 2022, for each of these stocks are shown in the following table. T-bill return is 3% and the average return on the S&P 500 Index over the last 5 years is 12% H G Beta 1.9; Proportion = 60% Beta 1.4; Proportion = 40% Year Dividend Share Price Beginning Ending Dividend Share Price Beginning Ending 2018 $2.60 $23.00 $28.00 $2.00 $39.00 $41.00 2019 $3.10 $28.00 $31.00 $2.20 $41.00 $37.00 2020 $3.70 $31.00 $38.00 $2.20 $37.00 $44.00 2021 $4.30 $38.00 $32.00 $2.70 $44.00 $52.00 2022 $4.60 $32.00 $33.00 $3.70 $52.00 $58.00 The coefficient of variation (CV) for the 1 point portfolio is Your answer The expected rate of return (CAPM) for 1 point the portfolio is Your answer The standard deviation of returns for 1 point stock G over the period is
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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Transcribed Image Text:Jamie Wong is thinking of building an
investment portfolio containing two stocks, H
and G. The dividend income and historical
share price data over the last 5 years, 2018 -
2022, for each of these stocks are shown in
the following table. T-bill return is 3% and the
average return on the S&P 500 Index over the
last 5 years is 12%
H
G
Beta 1.9; Proportion = 60%
Beta 1.4; Proportion = 40%
Year
Dividend
Share Price
Beginning Ending
Dividend
Share Price
Beginning Ending
2018 $2.60
$23.00
$28.00
$2.00
$39.00 $41.00
2019 $3.10
$28.00
$31.00
$2.20
$41.00
$37.00
2020
$3.70
$31.00
$38.00
$2.20
$37.00
$44.00
2021 $4.30
$38.00
$32.00
$2.70
$44.00
$52.00
2022 $4.60
$32.00 $33.00
$3.70
$52.00
$58.00
The coefficient of variation (CV) for the 1 point
portfolio is
Your answer
The expected rate of return (CAPM) for 1 point
the portfolio is
Your answer
The standard deviation of returns for
1 point
stock G over the period is
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