Suppose you manage a $500,000 retirement portfolio.  It is m…

Suppose you manage a $500,000 retirement portfolio.  It is made up of these mutual fund investments: Fund                Investment                  Beta.               Firm Projected Return A.                     $150,000                     2.0                               12 B                        50,000                      0.4                               6 C                       200,000                     1.1                               10 D.                      100,000                     0.9                              8   A.   What is the beta of the portfolio? B.   Given the Firm Projected Return,  what is the expected return on the portfolio?   C.  Using the Beta you calculated above, if the Risk Free rate is 3% and the Market risk premium is 6% what rate of return does the Capital Asset Pricing Model predict this portfolio should return?   D  According to the Capital Asset Pricing Model,  given the betas above, the Risk Free rate of 3% and if the Market risk premium is 6%  what should each of these assets return?   E If the CAPM estimate is correct, based on the firm’s projected return, which assets would the firm buy more of and which would it sell?    

Find the missing value of X (which is an annuity). I. Your…

Find the missing value of X (which is an annuity). I. Your broker has offered to sell you this investment for $17500, but you did not hear the value of the all of the cashflows. IF you feel you should earn a 15% return, what is the value of the Missing Cash Flow (XX) ?$1000 at the end of year 1$1000 at the end of year 2 $1000 at the end of year 3 2000 at the end of year 4$XX at the end of year 5$XX at the end of year 6 $XX at the end of year 7$4000 at the end of year 8. $4000 at the end of year 9A)If you feel that you should earn a 15% return on your investment, what is the value of the 5th, 6th  and 7th  cashflow?? (It is an annuity).(round the answer to the penny) B)  Check your work!  Return to your cash flows and enter the answer you had in A.   What is the NPV with the full set of cash flows entered?   C.  What is the IRR with the full set of values in your cash flow buttons?   (for partial credit, if needed, type your intermediate steps).