On Friday, April 4, 2013 you bought shares of the following stocks and you held this portfolio for a year:
Beta Prices: 4,4,13 prices: 4,4,14
10,000 shares of IBM (IBM) b = 1.44 S = $80.79 S = $90.45
20,000 of CITIGP (C) b = 1.23 S = $37.23 S = $12.67
7,500 shares of BOING (BA) b = 1.61 S = $26.50 S = $31.25
15,000 shares of GENERAL MOTORS (GM) b = 1.15 S = $34.90 S = $52.36
10,000 shares of TEXASINSTRUMENTS (TXN) b = 1.67 S = 16.90 S = 4.21
All the betas are with the S&P500I.
Compute the one-year rate of return on your portfolio:
1. Based on the total change in the portfolio value.
2. Based on the one-year rate of returns of the individual stocks.