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Modern Portfolio Concepts CAPM RRR= RFR + (Beta x (Market Return - RFR)) Risk Free Rate 4.0% 3.5% 2.5% BETA 1.09 2.00 1.25 Market Return
| Modern Portfolio Concepts | ||||
| CAPM | RRR= RFR + (Beta x (Market Return - RFR)) | |||
| Risk Free Rate | 4.0% | 3.5% | 2.5% | |
| BETA | 1.09 | 2.00 | 1.25 | |
| Market Return | 8% | 13% | 14% | |
| Risk Free Rate | 4.0% | 3.5% | 2.5% | |
| RRR | 8.36% | 22.50% | 16.88% | |
| Portfolio Return | Investment % | Return | ||
| Stock A | $5,200 | 25.6% | 25.0% | |
| Stock B | $4,100 | 20.2% | 10.0% | |
| Stock C | $3,800 | 18.7% | 3.0% | |
| Stock D | $7,200 | 35.5% | 11.0% | |
| Total Portfolio | $20,300 | Portfolio Return | 12.9 | |
| Portfolio Return | Investment | Return | ||
| Stock A | $2,500 | 15.6% | 18.0% | |
| Stock B | $4,500 | 28.1% | 8.0% | |
| Stock C | $3,500 | 5.0% | ||
| Stock D | $5,500 | 14.1% | ||
| Total Portfolio | $16,000 | Portfolio Return | ||
| BETA | Stock Price | Stock Market Re | New Stock Price | |
| 2.25 | 25 | 10% | ||
| 1.5 | 32 | 25% | ||
| 0.75 | 15 | 15% | ||
| 1 | 37 | 35% | ||
| Portfolio Beta | Investment % | Beta | ||
| Stock A | $6,500 | 2.0 | ||
| Stock B | $4,500 | 3.0 | ||
| Stock C | $3,500 | 0.8 | ||
| Stock D | $5,500 | 1.0 | ||
| Total Portfolio | $20,000 | Portfolio Return |
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Offshore Finance And State Power
Authors: Andrea Binder
1st Edition
0192870122, 978-0192870124
