**Portfolio Investment Exercise**Your portfolio consists of 100 shares of CSH and 50 shares of EJH, which you just bought at $20 and $30 per share, respectively. ### Questionsa. **What fraction of your portfolio is invested in CSH? In EJH?**b. **If CSH increases to $23 and EJH decreases to $29, what is the return on your portfolio?**#### Calculations 1. **Fraction of Portfolio Invested** - The fraction of capital invested in CSH and EJH is to be calculated. 2. **Investment Value Changes** - Calculate the portfolio's return if the share prices change as given.### Calculation for Fraction Invested:a. **What fraction of your portfolio is invested in CSH? in EJH?**\[ \text{The fraction invested in CSH is} \quad \_\_\%\quad \text{(Round to one decimal place.)} \]**Note:**Ensure to update the answers in the provided blanks after performing the necessary calculations. This practice helps students understand and analyze changes in portfolio values over time.

The fraction of investment can be calculated by using this equation Fraction =Individual…

Your portfolio consists of 100 shares of CSH and 50 shares of EJH, which you just bought at $20 and $30 per share, respectively. a. What fraction of your portfolio is invested in CSH? In EJH? b. If CSH increases to $23 and EJH decreases to $29, what is the return on your portfolio? a. What fraction of your portfolio is invested in CSH? In EJH? The fraction invested in CSH is %. (Round to one decimal place.)

Your portfolio consists of 100 shares of CSH and 50 shares of EJH, which you just bought at $20 and $30 per share, respectively. a. What fraction of your portfolio is invested in CSH? In EJH? b. If CSH increases to $23 and EJH decreases to $29, what is the return on your portfolio? a. What fraction of your portfolio is invested in CSH? In EJH? The fraction invested in CSH is %. (Round to one decimal place.)

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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An investor has $1000 initial wealth for investment and he borrows another $500 at the risk free rate. He then invest the entire total amount of $1500 in the market portfolio. What is his portfolio beta?
Suppose you have $200,000 in cash, and you decide to borrow another $24,000 at a 6% interest rate to invest in the stock market. You invest the entire $224,000 in a portfolio J with a 21% expected return and a 27% volatility. a. What is the expected return and volatility (standard deviation) of your investment? b. What is your realized return if J goes up 39% over the year? c. What return do you realize if J falls by 35% over the year? a. What is the expected return and volatility (standard deviation) of your investment? The expected return of your investment is ☐ %. (Round to two decimal places.)
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