John Peters invested $100,000 to set up the following portfolio last year A B C D Required: A) Calculate the portfolio B

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John Peters invested $100,000 to set up the following portfolio
last year
A
B
C
D
Required:
A) Calculate the portfolio Beta based on the
original amount invested.
B) Calculate percentage return for each
common share in the portfolio for the year.
C) Calculate the percentage return earned on
the portfolio for the year.
D) At the time John made the investment, the
analysts estimated the market return for the
coming year would be at 10 percent and the risk-free rate at 4
percent. Calculate the
required return for each stock based on its beta. Use the CAPM
model for evaluations.
E) Based on your answers above, part c) and d)
explain how each stock performed relative
to the required return. What factors would explain the
differences?
F) Calculate the arithmetic and geometric mean
return for the portfolio