(b)A portfolio consists of securities as follows:SecurityUnitsAverage buyingprice (RM)4.00BetaCurrent marketprice (RM)4.8030,00010,00080,000200,000150,000A1.3В1.28.009.60C1.31.203.20D1.50.500.30E1.60.200.10 Advise on the changes to be made if you would like to rebalance your portfolioaccording to the following weightings:SecurityWeighting30A20C2015E15

Portfolio: It is a mix or combination of different assets in which an investor invests to minimize…

(b) A portfolio consists of securities as follows: Units Current market Average buying price (RM) Security Beta price (RM) 1.3 30,000 10,000 A 4.00 4.80 В 1.2 8.00 9.60 C 1.3 80,000 200,000 150,000 1.20 3.20 1.5 0.50 0.30 E 1.6 0.20 0.10

(b) A portfolio consists of securities as follows: Units Current market Average buying price (RM) Security Beta price (RM) 1.3 30,000 10,000 A 4.00 4.80 В 1.2 8.00 9.60 C 1.3 80,000 200,000 150,000 1.20 3.20 1.5 0.50 0.30 E 1.6 0.20 0.10

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

(b)
A portfolio consists of securities as follows:
Security
Units
Average buying
price (RM)
4.00
Beta
Current market
price (RM)
4.80
30,000
10,000
80,000
200,000
150,000
A
1.3
В
1.2
8.00
9.60
C
1.3
1.20
3.20
D
1.5
0.50
0.30
E
1.6
0.20
0.10

Advise on the changes to be made if you would like to rebalance your portfolio
according to the following weightings:
Security
Weighting
30
A
20
C
20
15
E
15

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