An investor has purchased the following assets during the specified dates at the specified closing price for the respective dates:

 On the 10^th July 2020, the investor sold all the assets at the following respective closing prices:

 You are also given the following information about dividend payment from the shares:

 

Considering the above information, answer the following:

(a) Determine holding period return (HPR) for the investor for each asset considering the specified purchase/sell prices and any income from the assets applicable for the dates. 

                                                                                                        

(b) Assume the holding period returns determined for each asset in are also the expected returns for these assets for the foreseeable future. Also consider the proportion of investors' investment across the different assets based on the given purchase price and the number of units purchased. If a portfolio has the same proportion of investment across these assets, what is the expected return of that portfolio?   

                                                                                                      

(c)  Consider the value determined in (b). If the risk-free rate of return is 2.5% and the market risk premium is 11%, what is the beta of the portfolio?

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Asset Shares of Company A shares of Company B shares of Company C Cryptocurrency D Purchase Date 4 July 2019 8th August 2019 4th September 2019 11th November 2019 Closing Price per Unit $1.25 per share $0.75 per share $10.25 per share $250 per unit Number of units purchased 5,000 shares 10,000 shares 1,000 shares 100 units Asset Shares of Company A shares of Company B shares of Company C Cryptocurrency D Purchase Date 4 July 2019 8th August 2019 4th September 2019 11th November 2019 Closing Price per Unit $1.25 per share $0.75 per share $10.25 per share $250 per unit Number of units purchased 5,000 shares 10,000 shares 1,000 shares 100 units

Answer rating: 100% (QA)

Ans A Holding period return is calculated as below Capital gains Dividends paid Amount invested Asse... View the full answer