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Please answer all from A to E Homework: Chapter 08 Homework Save Score: 0 of 1 pt 10 of 10 (2 complete) HW Score: 20%,

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Please answer all from A to E

Homework: Chapter 08 Homework Save Score: 0 of 1 pt 10 of 10 (2 complete) HW Score: 20%, 2 of 10 pts P8-27 (similar to) Question Help Portfolio return and beta Personal Finance Problem Jamie Peters invested $125,000 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 11%. 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? a. The portfolio beta on the basis of the original cost figures is . (Round to two decimal places.) Data Table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Asset Cost $33,000 $40,000 $36,000 $16,000 Beta at purchase 0.88 0.95 A B D Yearly income $1,000 $1,300 $0 $475 Value today $33,000 $41,000 $42,500 $16,500 1.41 1.36 Print Done Enter your answer in the answer box and t 11 parts Clear All remaining Check

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