Portfolio return and beta Personal Finance Problem Jamie Peters invested $$112,000$ to set up the following portfolio one year ago: $$

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.

beta and the expectations of market and risk$-$free returns.

Data table

$($Click on the icon here $$ in order to copy the contents of the data table below into a spreadsheet.$)$

a$.$ The portfolio beta on the basis of the original cost figures is $($Round to two decimal places.$)$

b$.$ The percentage return for asset A for the year is $\%.($Round to two decimal places.$)$

The percentage return for asset $B$ for the year is $\%.($Round to two decimal places.$)$

The percentage return for asset $C$ for the year is $,\%.($Round to two decimal places.$)$

The percentage return for asset $D$ for the year is $\%.($Round to two decimal places.$)$

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

The expected rate of return for asset $A$ is $\%.($Round to two decimal places.$)$

The expected rate of return for asset B is $\%.($Round to two decimal places.$)$

The expected rate of return for asset $C$ is $,$ o$.($Round to two decimal places.$)$

The expected rate of return for asset $D$ is $,6.($Round to two decimal places.$)$

e$.$ What factors could explain the differences between the actual returns of the assets and the CAPM expected returns? $($Select the best answer below.$)$

A$.$ The beta, as a single measure, may not capture all the systematic factors that cause the expected return.

B$.$ The firm's characteristics may have changed such that the beta at the time of the purchase either overstated or understated the true value of beta that existed during that year.

C$.$ Any underperformance could be due to any unsystematic factor which would have caused the firm to not do as well as expected.