4. The estimated factor sensitivities for Pacific Energy and the risk premiums associated with those factors are given below: Beta Risk premium Factor 1 1.20 4.5% Factor 2 -0.50 2.7% Factor 3 -0.15 4.3% Calculate the required return using these estimates. Assume the T-bill rate is 4.7%. 5. You are comparing the performance of two portfolios. The Acme Fund averaged a return of 20% with a beta of 1.5 and the Balta Fund averaged a return of 15% with a beta of 1.2. The T-bill rate was 5% and the market return during the period was 13%. Which portfolio performed better? Why? 4. The estimated factor sensitivities for Pacific Energy and the risk premiums associated with those factors are given below: Beta Risk premium Factor 1 1.20 4.5% Factor 2 -0.50 2.7% Factor 3 -0.15 4.3% Calculate the required return using these estimates. Assume the T-bill rate is 4.7%. 5. You are comparing the performance of two portfolios. The Acme Fund averaged a return of 20% with a beta of 1.5 and the Balta Fund averaged a return of 15% with a beta of 1.2. The T-bill rate was 5% and the market return during the period was 13%. Which portfolio performed better? Why