A portfolio at the beginning of the quarter has a market value of $150 million. In the middle of the quarter, the investor adds $75 million and the portfolio value has fallen to $75 million. At the end of the quarter, the portfolio has a market value of $300 million. Calculate (i) the time weighted return for the month and; (ii) the dollar weighted return.
Risk and return
Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary.
Capital Asset Pricing Model
Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.
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by Bartleby ExpertThanks for the answer but please do the calculation without using excel formula
by Bartleby Expert
