Assume that as a portfolio manager the beta of your portfolio is 1.3 and that your performance is exactly on target with the SML data under condition 1. If the true SML data is given by condition 2, how much does your performance differ from the true SML? 
Definitions:
Industry
An industry is a group of companies that are related based on their primary business activities.
Local Currency Return
The return on an investment denominated in the currency of the country where the investment is made.
Stock Market
A public marketplace for buying and selling stocks, which represent ownership claims on businesses.
Total Revenue
The total amount of money generated by a company from its business activities, before any expenses are subtracted.
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