Jamie Peters invested $100,000 to set up the following portfolio 1 year ago.

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	---	34,500
D	15,000	1.25	375	16,500

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 relative to those CAPM-generated expectations of performance. What factors could explain these differences?