Jeanne Lewis is attempting to evaluate 2 possible portfolios consisting of the same 5 assets but held in different proportions. She is particularly interested in using beta to compare the risk of the portfolios and, in this regard, has gathered the following data:(Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet.)

		Portfolio Weights (%)
Asset	Asset Beta	Portfolio A			Portfolio B
1	1.34		10			31
2	0.74		28			8
3	1.29		13			20
4	1.12		12			22
5	0.94		37			19
	Total		100			100

a.Calculate the betas for portfolios A and B.

b.If the risk-free rate is 1.8% and the market return is 5.5%,calculate the required return for each portfolio using the CAPM.

c. Then assume you now have the following annual returns (r Subscript jrj) for each investment.

Asset	r Subscript jrj
1	15.5%
2	13.0%
3	15.5%
4	12.5%
5	7.0%

Using the required return for each portfolio and the additional return data, determine which portfolio you would choose and explain why.