Jason Jackson is attempting to evaluate 2 possible portfolios consisting of the same 5 assets but held in different proportions. He is particularly interested in using beta to compare the risk of the portfolios and, in this regard, has gathered the following data:

		Portfolio Weights
Asset	Asset Beta	Portfolio A	Portfolio B
1	1.31	22	32
2	0.66	33	15
3	1.21	10	24
4	1.05	12	19
5	0.94	23	10
	Total	100	100

a. Calculate the betas for portfolios A and B.

b. If the risk-free rate is 2.7% and the market return is 8.3%,calculate the required return for each portfolio using the CAPM.

c. Then assume you believe that each of the five assets will earn the return shown in this table:

Asset	Returns
1	6.5
2	6
3	7
4	5.5
5	6.5

. Based on these figures and the weights , what returns do you believe that Portfolios A and B will earn? Which portfolio you would invest in and why?