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: 5 a. Calculate the betas for portfolios A and B. b. If the risk-free rate is 2.4% and the market return is 5.2%, 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: 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.) Data Table Data Table - in order to copy the contents of the data table (Click on the icon here into a spreadsheet.) (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Asset Asset 1 2 1 Asset Beta 1.34 0.69 1.21 1.14 0.89 Portfolio Weights Portfolio A Portfolio B 15% 33% 31% 10% 10% 16% 15% 30% 29% 11% 100% 100% 3 Returns 7.0% 7.5% 9.5% 8.5% 6.5% 2 3 4 4 5 5 Total Print Ent Done Print Done 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: 5 a. Calculate the betas for portfolios A and B. b. If the risk-free rate is 2.4% and the market return is 5.2%, 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: 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.) Data Table Data Table - in order to copy the contents of the data table (Click on the icon here into a spreadsheet.) (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Asset Asset 1 2 1 Asset Beta 1.34 0.69 1.21 1.14 0.89 Portfolio Weights Portfolio A Portfolio B 15% 33% 31% 10% 10% 16% 15% 30% 29% 11% 100% 100% 3 Returns 7.0% 7.5% 9.5% 8.5% 6.5% 2 3 4 4 5 5 Total Print Ent Done Print Done