Q1.

On Friday, April 3, 2020 JD bought shares of the following stocks and held this portfolio for a year:

Beta Prices: 4,3,20 prices: 4,2,21

10,000 shares of IBM (IBM) b = 1.44 S = $112.51 S = $119.40

20,000 of CITIGP (C) b = 1.23 S = $41.80 S = $63.21

7,500 shares of BOING (BA) b = 1.61 S = $100.53 S = $212.33

15,000 shares of GENERAL MOTORS (GM) b = 1.15 S = $21.50 S = $59.60

10,000 shares of TEXASINSTRUMENTS (TXN) b = 1.67 S = $94.33 S = $195.12 All the betas are with the S&P500I.

Compute the one-year rate of return on JD's portfolio:

1.1 Based on the total change in the portfolio value.

1.2 Based on the weighted average of the one-year rate of returns of the individual stocks in the portfolio.