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Portfolio return and beta Personal Finance Problem Jamie Peters invested 5115,000 to set up the tollowing perttolio one year ago a. Calculate the portolio beta
Portfolio return and beta Personal Finance Problem Jamie Peters invested 5115,000 to set up the tollowing perttolio one year ago a. Calculate the portolio beta on the basis of the onginal cost tigures 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. d. At he lime Jarmade his vestments nvestors ere estimating at he market eturn the com ng year would be g 6. The estimate o the risk ree rate ofre urn averaged 4% fo he coming year a culate an expected rate ofreturn or each stock on the basis of its beta and the expectations of market and risk-free returns e. On the basis of the actual results, explain how each stock in the porttolio pertormed ditterently relative to those CAPM-generated expectetions of pertonmance. What factors could explain these ditterences? a. The portolio beta on the basis ot the onginal cost tigures s(Round to two decmal places) Data Table Click on the icon located on the top-right corner of the data table below in order to copy its contents nto a Asset Cost 30000 34,000 35.000 $16,000 Beta at purchase 0.75 0.98 1.48 1.25 Yearly income $1,400 $1,200 S0 325 Value today S30,000 $35,000 $41,500 Print Done
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