Questions from General Investment

Q: Your portfolio returned 13% last year, with a beta equal

Your portfolio returned 13% last year, with a beta equal to 1.5. The market return was 10%, and the risk-free rate was 4%. Did you earn more or less than the required rate of return on your portfolio?...

Q: Chee Chew’s portfolio has a beta of 1.3 and earned

Chee Chew’s portfolio has a beta of 1.3 and earned a return of 12.9% during the year just ended. The risk-free rate is currently 4.2%. The return on the market portfolio during the year just ended was...

Q: The risk-free rate is currently 8.1%. Use

The risk-free rate is currently 8.1%. Use the data in the accompanying table for the Fio family’s portfolio and the market portfolio during the year just ended to answer the question...

Q: Over the past two years, Jonas Cone has used a dollar

Over the past two years, Jonas Cone has used a dollar-cost averaging formula to purchase $300 worth of FCI common stock each month. The price per share paid each month over the two years is given in t...

Q: Using the data in the following table, assume you are using

Using the data in the following table, assume you are using a constant-dollar plan with a rebalancing trigger of $1,500. The stock price represents your speculative portfolio, and the MM mutual fund r...

Q: Referring to Problem 13.18, assume you are using a

Referring to Problem 13.18, assume you are using a constant-ratio plan with a rebalance trigger of speculative-to-conservative of 1.25. What action, if any, should you take in time period 2? Be specif...

Q: Portfolio A and Portfolio B had the same holding period return last

Portfolio A and Portfolio B had the same holding period return last year. Most of the returns from Portfolio A came from dividends, while most of the returns from Portfolio B came from capital gains....

Q: Using the data in the following table, assume you are using

Using the data in the following table, assume you are using a variable-ratio plan. You have decided that when the speculative portfolio reaches 60% of the total, you will reduce its proportion to 45%....

Q: While most people believe that it is not possible to consistently time

While most people believe that it is not possible to consistently time the market, there are several plans that allow investors to time purchases and sales of securities. These are referred to as form...

Q: John Reardon purchased 100 shares of Tomco Corporation in December 2019 at

John Reardon purchased 100 shares of Tomco Corporation in December 2019 at a total cost of $1,762. He held the shares for 15 months and then sold them, netting $2,500. During the period he held the st...