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Please answer A-E Portfolio return and beta Personal Finance Problem Jamie Peters invested $111,000 to set up the following portfolio one year ago: E. a.

Please answer A-E

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Portfolio return and beta Personal Finance Problem Jamie Peters invested $111,000 to set up the following portfolio one year ago: E. 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 9%. The estimate of the risk-free rate of return averaged 3% 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? .... a. The portfolio beta on the basis of the original cost figures is (Round to two decimal places.) - X Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Asset B Cost $28,000 $40,000 $33,000 $10,000 Beta at purchase 0.78 0.98 1.42 1.26 Yearly income $1,300 $1,400 $0 $350 Value today $28,000 $41,000 $39,500 $10,500 D Print Done

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