risk free rate is 4%

market return fkr that year wouod be 10%

Portfolio return and beta Personal Finance Problon Jamie Peters imvested $105 ooo to set up the following portiolio one year ago a. Caiculate the portiolio beta oe the basis of the original cost figures b. Calculate the percentage return of each assed in the portlolio for the your c. Calculate the percentage return of the portobo on the basis of onginal cost, using income and gains duning the year d. At the time Jarnie made his investments, imvestors were estomating that the market retum for the coming year would bet 10 sh: The estimate of the risk-free fate return for eich stock on the base of its beta and the expectabions of market and resk-tree retures 6. On the basis of the actual results, explan how each stock in the portolio performed dflecently relative to thase CAPm-generated expectabioris of performance The percentige rotum for asset C for the year is of. (Found to two decimal places) The percentage returnsor asset D for the year is /2 (Round to two decinial places) c. The percentage retum of the portlolio on the barsis of original cost, using uncome and gains during the year is The expected rate of return for arsset A is . (Round to bwo decimal places) The expected rate of refum for abiet B is of (Found to two decirnal places) The expected rale of retuen for asset C is (Round to two docimal places) The expected rate of return for asset D is of. (Round to fwo decimal places) 6. What faciors could explan the differences between the actual fesurms of the assets and the CAPM expected retums? (Select the bert aniswer below.). A. Any underpeformance cosild be due fo any unsyitemabi factor which woild have caused the firm to not do as well as expected B. The firmis characteristics nay have changed such that the beta at the time of bhe purchase eather ovecstated or understancd the true value of beta that ex C. The beta, in a sughe measure, may not capture al the systenatic tactors that canse the expected return. D. All of the above lick on the icon here in order to copy the contents of the data table below into a spreadsheet.)