Question: Portfolio A returned 9.20% p.a over the evaluation period compared to a 5.00% p.a for the S&P 500. This equates to a difference or outperformance

Portfolio A returned 9.20% p.a over the evaluation period compared to a 5.00% p.a for the S&P 500. This equates to a difference or outperformance of 4.20% p.a. According to CAPM, the annualized alpha of portfolio A is 4.74% p.a. Explain the difference between the two numbers. (Note it is not due to rounding)

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