Assume that as a portfolio manager the beta of your portfolio is 1.15 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:
ABC Model
A framework used in psychology that describes the impact of an individual's beliefs about an event on their emotional and behavioral reactions, emphasizing the cognitive evaluation of events.
Attitude Scales
Tools used to measure and quantify individuals' attitudes, opinions, or beliefs towards certain topics, objects, or entities.
Affective Component
Refers to the emotional experience associated with an attitude or a psychological state, including feelings and emotions.
Attitude
A psychological tendency expressed by evaluating something with a degree of favor or disfavor.
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