=+LG 5 P8–23 Portfolio betas Joe Moss is attempting to evaluate two possible portfolios, which consist of the same five assets held in different proportions. He is particularly interested in using beta to compare the risks of the portfolios, so he has gathered the data shown in the following table.

Portfolio weights Asset Asset beta Portfolio X Portfolio Y 1 2.5 20% 10%
2 0.8 10 30 3 1.2 30 10 4 0.9 10 30 5 1.6 30 20 Totals 100% 100%