Portfolio Retun ad beta Tamie Pelers jouskd 17,000 to Set follwincy portfolio the up year ago ane TTE Asset Bela od Pudr Cost 310,000 $ 37,000 33, D00 dlue teday 3epoo 38,oc0 39, S00 l,s00 faily heme $(4.00 A 0.9a 0.S7 4,89 300 A Calalita tae Porfolo on the be fa en he basis of he original cest gs Cafeulete Hu pvenhage rehuer f tach essdin he prelo fer Hhe yar Ca Celea lak the pecentage hang Hle prHelo on the hests ofanigral Cost, usiag inceme nd gains curidy Hk year At the Aime Jane made his inestant,investors were estimafirey Heucd He mekef re forhe comng yar ld be 1%The estimate f Hhe rist free raky chun gad 2 for Hhe aominy year Calculete an expeld rake of refain fer ech Stock on Hhe oa5is of its beta antd Hhe expecta tens nrket and risk-free fctums Dn the bess of Hhe actual resalts eyphia bne mch shel i the pert felio parfamed diferedtly relehpe to Hese CAn-ged expictatans of perfmante, What factors Cauld explain Hhe se diffevendes Portfolio return and beta Personal Finance Problem Jamie Peters invested $117,000 to set up the following portfolio one year ago Data Table a. Calculate the portfolio beta on the basis of the original cost fiqures 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 retun for the coming year would be 11% The estimate of the risk-froe rate of return averaged 5 % for the coming year Calculate an expected rate of retun 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) spreadsheet. Beta at purchase Asset Cost Yearly income $1,400 $1,600 Value today $36,000 $37,000 $33,000 $11,000 0.79 $36,000 B 0.92 $38,000 $39,500 $11,500 C 1.57 $0 1.29 $300