Question
Laurel Wilson has a portfolio of five stocks. The stocks' actual investment performance last year is given below along with an estimate of this year's
Laurel Wilson has a portfolio of five stocks. The stocks' actual investment performance last year is given below along with an estimate of this year's performance.
| Last Year | This Year | ||||
| Stock | Beta | Investment | Return | Investment | Return |
| A | 1.1 | $50000 | 8.0% | $55000 | 8.5% |
| B | 0.6 | 40000 | 6.0 | 40000 | 7.0 |
| C | 1.1 | 80000 | 4.5 | 60000 | 4.5 |
| D | 1.6 | 20000 | 12.0 | 45000 | 8.0 |
| E | 0.8 | 60000 | 3.0 | 50000 | 5.0 |
Calculate Laurel's portfolio beta for last year and for this year. Assume that the changes in investment (value) come from changing stock prices rather than buying and selling shares. Do not round intermediate calculations. Round the answers to two decimal places. Last year: This year:
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ISE Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett, Otgo Erhemjamts
8th International Edition
1265561435, 9781265561437
