Portfolio return and beta Personal Finance Problem Jania Paters veated $118,000 to set up the folowing...

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Portfolio return and beta Personal Finance Problem Jania Paters veated $118,000 to set up the folowing portfoto one year ag a. Calculate the portfolio bete on the basis of the original cost figures b. Calculate the percentage retum of each asset in the portiodo for the year, e. Calolate the percentage rebum of the portfolio on the basis of original cost, using income and gains during the year d. At the time Jame made his Investments, Investors ware estimating that the market return for the coming year would be 11% The estimate of the risk-free rate of return averaged 5% for the coming year. Calculate an expe spechos of market and rick se returns On the basis of the athal nuts, explain how each stock in the portfolio performed diferently relative to those CAPM-generated expectations of performance. What factors could explain these differences? The porthlo bela on the basis of the original cost figures in Hound to two decimal places.) b. The percentage retum for asset A for the year is The percentage retum for asset B for the year The percentage retum for asset for the year is The porcemaeum for asset D for the year is pound to two decimal places.) % (Round to two decimal places.) %. Round to two decimal places.) (Round to two decimal places.) e. The percentage retum of the sortoin on the basis of original cost, using income and gains during the year is % (Round to two decimal places.) d. At the trse Jamie mate is investmanis, investors were estimating that the market redum for the coming year would be 11% and the estimats of the sk-troe rate of retum averaged 5% for the coming year The expected role of rebum for asset A is % (Round to two decimal places.) % (Round to two decimal places,) The expected of retum fox asset is The expected rate of return for asset ca The expert rate of it for asset 0 e. What factors could explal: the differances between the actus retums of the ass (Round to two decimal places.) (Round to two decimal places.) Data table (Click on the loen hare in order to copy the contents of the data table below into a spreadsheet) Aseet A Cost $35,000 Bata at purchase Yearly Income Value today 0.89 $1,200 OA. Any underperfomance could be due to any unsystematic fector which would OB. The bela, ac a sigle measure, may not capture all the systemate factors the OC. The firm charachariados may have changed such that the beta at the time of $36,000 B $39,000 0.90 $1,500 $40,000 C $32,000 1.55 50 $38.500 D $11,000 135 $400 $11.500 D. All of the abova Portfolio return and beta Personal Finance Problem Jania Paters veated $118,000 to set up the folowing portfoto one year ag a. Calculate the portfolio bete on the basis of the original cost figures b. Calculate the percentage retum of each asset in the portiodo for the year, e. Calolate the percentage rebum of the portfolio on the basis of original cost, using income and gains during the year d. At the time Jame made his Investments, Investors ware estimating that the market return for the coming year would be 11% The estimate of the risk-free rate of return averaged 5% for the coming year. Calculate an expe spechos of market and rick se returns On the basis of the athal nuts, explain how each stock in the portfolio performed diferently relative to those CAPM-generated expectations of performance. What factors could explain these differences? The porthlo bela on the basis of the original cost figures in Hound to two decimal places.) b. The percentage retum for asset A for the year is The percentage retum for asset B for the year The percentage retum for asset for the year is The porcemaeum for asset D for the year is pound to two decimal places.) % (Round to two decimal places.) %. Round to two decimal places.) (Round to two decimal places.) e. The percentage retum of the sortoin on the basis of original cost, using income and gains during the year is % (Round to two decimal places.) d. At the trse Jamie mate is investmanis, investors were estimating that the market redum for the coming year would be 11% and the estimats of the sk-troe rate of retum averaged 5% for the coming year The expected role of rebum for asset A is % (Round to two decimal places.) % (Round to two decimal places,) The expected of retum fox asset is The expected rate of return for asset ca The expert rate of it for asset 0 e. What factors could explal: the differances between the actus retums of the ass (Round to two decimal places.) (Round to two decimal places.) Data table (Click on the loen hare in order to copy the contents of the data table below into a spreadsheet) Aseet A Cost $35,000 Bata at purchase Yearly Income Value today 0.89 $1,200 OA. Any underperfomance could be due to any unsystematic fector which would OB. The bela, ac a sigle measure, may not capture all the systemate factors the OC. The firm charachariados may have changed such that the beta at the time of $36,000 B $39,000 0.90 $1,500 $40,000 C $32,000 1.55 50 $38.500 D $11,000 135 $400 $11.500 D. All of the abova