I think it should do better. I have one with a 10" barrel that shoots sub 2" at 50 yards with nothing more than a Holosun red dot. The one thing I did have problems with was using anything other than conical bullets. There is no feed ramp on my gun. It relies on the magazine placing the round in such a position as to allow the bolt to drive it into the chamber. Every round that gets chambered shows a flat spot where the bullet got driven into the side of the chamber before being seated completely. This is more pronounced on plated bullets than jacketed. The use of anything other than conical nosed bullets lends itself to jamming.
I would try your accuracy with some FMJ ammunition and see if your problem isn't that your bullets are being deformed before firing, causing the poor accuracy. As a side, I found that loading ammo to +P standards seemed to help as well. I'm loading 124gr Berry's RNHBTP bullets over 7.7gr of Accurate no.7 and that gives me a SCREAMING 1380 fps average muzzle velocity as measured by a Labradar chronograph. Of course, it barks a lot louder, and theres more recoil.
With coated reloads is going to be harder.
It also depends how consisten everything os from load to load.
If you get 2 to 5 moa that is average at s distance.
At close distance it doesn't matter as much.
One thing to consider is that when buying bulk I have found fmj and tmjs cheaper than cast and copper plated bullets
Hornady has ( or at lrast used to have ) the 2.5k and 3k boxes with hap and fmj for 8-9 cents a piece. Same price range as bulk 62gr 22cal.
Again the key is to find bulk deals and discounts
Accurate no 7 is a fantastic choice. You don't have to crank them up, but I do. The powder burns exceptionally clean and meters beautifully. I tried Accurate no 5 because I had some. It shot well, but didn't produce the velocities that 7 did. Ramshot Zip was ok too, but I like 7 the best.