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Richard has just received an unexpected bonus at work worth $5,250 and, given the J. Corp.'s reputation for excellent investment decision making, he will invest
Richard has just received an unexpected bonus at work worth $5,250 and, given the J. Corp.'s reputation for excellent investment decision making, he will invest all of the bonus in J Corp. stock. Given the rates of return for stocks A, B, C, and D presented in Question 1 and the rates of return for J Corp. stock and the market presented in Question 2, as well as the cash amounts he is investing in stocks A, B, C, and D as you determined in Question 1, Enter Answer a) What is the beta of Richard's portfolio? (3 Marks) (round to two decimal points) b) Richard's portfolio is... (2 Mark) Aggressive Defensive Neither } Check only one box Year 1 2 3 4 5 6 7 8 9 10 11 12 J Corp. Market Return (%) Return (%) -0.57 -1.90 14.21 16.58 11.20 12.81 10.40 11.81 -6.97 -9.90 13.79 16.05 29.59 35.80 11.39 13.05 4.87 4.90 15.01 17.58 -3.70 -5.81 -0.57 -1.90 Year Stock A (%) Stock B (%) Stock C (%) Stock D (%) 1 -2.990 0.000 1.530 -5.510 2 33.970 9.240 -7.710 49.930 3 26.430 7.355 -5.825 38.620 4 24.430 6.855 -5.325 35.620 5 -18.990 -4.000 5.530 -29.510 6 32.910 8.975 -7.445 48.340 7 72.410 18.850 -17.320 107.590 8 26.910 7.475 -5.945 39.340 9 10.610 3.400 -1.870 14.890 10 35.970 9.740 -8.210 52.930 11 - 10.810 -1.955 3.485 -17.240 12 -2.990 0.000 1.530 -5.510 Richard has just received an unexpected bonus at work worth $5,250 and, given the J. Corp.'s reputation for excellent investment decision making, he will invest all of the bonus in J Corp. stock. Given the rates of return for stocks A, B, C, and D presented in Question 1 and the rates of return for J Corp. stock and the market presented in Question 2, as well as the cash amounts he is investing in stocks A, B, C, and D as you determined in Question 1, Enter Answer a) What is the beta of Richard's portfolio? (3 Marks) (round to two decimal points) b) Richard's portfolio is... (2 Mark) Aggressive Defensive Neither } Check only one box Year 1 2 3 4 5 6 7 8 9 10 11 12 J Corp. Market Return (%) Return (%) -0.57 -1.90 14.21 16.58 11.20 12.81 10.40 11.81 -6.97 -9.90 13.79 16.05 29.59 35.80 11.39 13.05 4.87 4.90 15.01 17.58 -3.70 -5.81 -0.57 -1.90 Year Stock A (%) Stock B (%) Stock C (%) Stock D (%) 1 -2.990 0.000 1.530 -5.510 2 33.970 9.240 -7.710 49.930 3 26.430 7.355 -5.825 38.620 4 24.430 6.855 -5.325 35.620 5 -18.990 -4.000 5.530 -29.510 6 32.910 8.975 -7.445 48.340 7 72.410 18.850 -17.320 107.590 8 26.910 7.475 -5.945 39.340 9 10.610 3.400 -1.870 14.890 10 35.970 9.740 -8.210 52.930 11 - 10.810 -1.955 3.485 -17.240 12 -2.990 0.000 1.530 -5.510
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