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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

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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 th regard, has gathered the following data: a. Calculate the betas for portfolios A and B. b. If the risk-free rate is 1.9% and the market return is 5.7%, 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 (1;) shown in this table: B. 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? a. The beta of portfolio A is . (Round to three decimal places.) The beta of portfolio B is (Round to three decimal places.) b. The required return of portfolio A is 1%. (Round to two decimal places.) The required return of portfolio B is %. (Round to two decimal places.) c. The weighted return of portfolio A is %. (Round to two decimal places.) The weighted return of portfolio B is %. (Round to two decimal places.) Since the market return is expected to be V, he should probably choose the portfolio with the higher beta, portfolio (Select from the drop-down menus.) blios consisting of the same 5 assets but held in different proportions. He is particularly interested in using i Data Table 7%, will e urns do yo piac in order to copy the contents of the data table below (Click on the icon here into a spreadsheet.) places Asset Returns two de 1 7.0% 7.0% vo deci 3 9.0% 8.0% 6.5% co two d two ded Print Done he sh rop-down mer ortfolios consisting of the same 5 assets but held in different proportions. He is particularly interested in using i Data Table 5.7%, ets will e urns do in order to copy the contents of the data table below (Click on the icon here into a spreadsheet.) illal pide mal places Portfolio Weights Portfolio A Portfolio B Asset Asset Beta to two da 1 1.32 23% 29% 0.69 35% o two deci 5% 17% on AWN 1.21 1.07 9% 10% 23% nd to two dl 21% 28% 0.87 Total 100% 100% to two ded he sh Print Done fop-down m

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