100 REBOQUERES BB BAR) 9. SONO DAL L 2Cept the project way! (KS) 3. Mr Blame is the manager of BAE Fund Co, he is attempting to evaluate two possible portfolios, which consist of the same four assets held in different proportions. He is particularly interested in using beta to compare the risks of the portfolios, so he has gathered the expected retum and beta of each asset shown in the following table, Mo Asset 1 3 4 Total Return 10% 8% 12% 6% Asset beta Portfolio A 13 10% 08 20% 1.5 40% 0.6 30% 100% Portfolio B 30% 10% 20% 40% 100% 1) Calculate the betas and returns for portfolios A and B (10 marks) 2) Compare the risks of these portfolios to the market as well as to each other. Which portfolio is more risky (2 marks) 11 If the Protor rohe of market is O and the riskfronteic 3% which 100 REBOQUERES BB BAR) 9. SONO DAL L 2Cept the project way! (KS) 3. Mr Blame is the manager of BAE Fund Co, he is attempting to evaluate two possible portfolios, which consist of the same four assets held in different proportions. He is particularly interested in using beta to compare the risks of the portfolios, so he has gathered the expected retum and beta of each asset shown in the following table, Mo Asset 1 3 4 Total Return 10% 8% 12% 6% Asset beta Portfolio A 13 10% 08 20% 1.5 40% 0.6 30% 100% Portfolio B 30% 10% 20% 40% 100% 1) Calculate the betas and returns for portfolios A and B (10 marks) 2) Compare the risks of these portfolios to the market as well as to each other. Which portfolio is more risky (2 marks) 11 If the Protor rohe of market is O and the riskfronteic 3% which