a.Calculate the portfolio beta on the basis of the original cost figures.

b.Calculate the percentage return of each asset in the portfolio for the year.

c.Calculate the percentage return of the portfolio on the basis of original cost, using income and gains during the year.

d.At the time Jamie made his investments, investors were estimating that the market return for the coming year would be

10%. The estimate of the risk-free rate of return averaged 4% for the coming year. Calculate an expected rate of return for each stock on the basis of its beta and the expectations of market and risk-free returns.

e.On the basis of the actual results, explain how each stock in the portfolio performed differently relative to those CAPM-generated expectations of performance. What factors could explain these differences?

Asset	Cost	Beta at purchase	Yearly income		Value today
A	$20,000	0.80	$1,600		$20,000
B	$35,000	0.95	$1,400		$36,000
C	$30,000	1.50	$0		$34,500
D	$15,000	1.25	$375		$16,500

Round 2 decimal places.

a. The portfolio beta on the basis of the original cost figures is

b.The percentage return for asset A for the year is

The percentage return for asset B for the year is

The percentage return for asset C for the year is

The percentage return for asset D for the year is

c.The percentage return of the portfolio on the basis of original cost, using income and gains during the year is __

d.At the time Jamie made his investments, investors were estimating that the market return for the coming year would be 10% and the estimate of the risk-free rate of return averaged 4% for the coming year. The expected rate of return for asset A is ___