Assignment: Beta And Portfolio Return
This is the fourth component of your course project.
Along with completing the weekly portfolio analysis, this week you will calculate the beta and return for your portfolio. Compare the risk of the portfolio to that of the market. Using the CAPM, calculate the expected returns for the individual securities in your portfolio. Explain the benefit of the diversification obtained by owning all of the securities in your portfolio.
You may want to search the Internet for CAPM calculators and resources.
Having completed the beta and return for your portfolio, answer the following questions as part of your analysis:
• Is the portfolio risk in line with your personal investment objectives?
• What was the relative percentage change in your portfolio value compared to the percentage change in the market (using your benchmark market) for the past week?
As you make changes in your portfolio, recalculate the portfolio beta and comment on the resulting changes in risk.
Include the following elements in your ongoing weekly portfolio analysis.
• A weekly performance record of your portfolio, in comparison with a selected benchmark.
• The background information on macroeconomic, industrial, financial market, political, or other news events that might affect the risk and return of the portfolio. You are encouraged to keep a weekly journal of these events. Note: You will be required to provide a summary of these events in an appendix of your final project paper.
• A reassessment of asset investments, accompanied by detailed analysis and rationale.
• A review of the changes in the risk of the portfolio and recalculation of the portfolio's beta, based on your buying and selling of securities.
• Your comments on trading activity (or turnover), including any contemporary factors (fiscal, economic, industry- or sector-specific, and political issues).
Title your 2-3-page analysis (including any graphics) as "Beta and Portfolio Return," and submit it to the assignment area. See the Beta and Portfolio Return Scoring Guide for the grading criteria for this assignment. Review the course project information for more details on your project.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.