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.

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 $5\%$ 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?