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On Friday, April 4, 2008 you bought shares of the following stocks and you held this portfolio for a year: Beta Prices: 4,4,08 prices: 4,4,09

On Friday, April 4, 2008 you bought shares of the following stocks and you held this portfolio for a year:

Beta Prices: 4,4,08 prices: 4,4,09

10,000 shares of IBM (IBM) b = 1.44 S = $80.79 S = $90.45

20,000 of CITIGP (C) b = 1.23 S = $37.23 S = $12.67

7,500 shares of BOING (BA) b = 1.61 S = $26.50 S = $31.25

15,000 shares of GENERAL MOTORS (GM) b = 1.15 S = $34.90 S = $52.36

10,000 shares of TEXASINSTRUMENTS (TXN) b = 1.67 S = $16.90 S = $4.21

All the betas are with the S&P500I.

Compute the one-year rate of return on your portfolio:

1.1 Based on the total change in the portfolio value.

1.2 Based on the one-year rate of returns of the individual stocks.

Q2. Use the data in Q1 to calculate the Beta of your portfolio.

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