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Question 5 Flag question Wallace set up the following portfolio one year ago: Not yet...

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Question 5 Flag question Wallace set up the following portfolio one year ago: Not yet answered Marked out of 3.125 Asset Cost Beta at purchase Yearly income Value today $20,000 1.3 $2,000 $19,000 Y $30,000 0.8 $36,000 At the time Wallace made his investments, he estimated that the market return and risk-free rate for the coming year would be 12% and 4%, respectively. Which of the following is true? Select one: O a. This portfolio earned a return less than the expected market return. b. This portfolio earned a return greater than the expected market return. c. This portfolio is less risky than the market. d. Asset Y was not a good investment because it did not provide yearly income. e. None of the above

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