Question
Jamie Peters invested $100,000 to set up the following portfolio 1 year ago. Asset Cost Beta at purchase Yearly income Value today A $20,000 0.80
Jamie Peters invested $100,000 to set up the following portfolio 1 year ago.
| Asset | Cost | Beta at purchase | Yearly income | Value today |
|---|---|---|---|---|
| A | $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 (please show how) b. Calculate the percentage return of each asset in the portfolio for the year. c. Calculate the percentage return of the portfolio on the basis of original cost, using income and gains during the year.
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Financial Management For Public Health And Not For Profit Organization
Authors: Steven A. Finkler
3rd International Edition
0138152772, 9780138152772
