Personal Finance Problem P8-23 Portfolio betas Joe Moss is attempting to evaluate two possible portfolios, which consist of the same five assets held in different proportions. He is particularly inter- ested in using beta to compare the risks of the portfolios, so he has gathered the data shown in the following table. Asset 1 2 3 4 5 Totals Asset beta 2.5 0.8 1.2 0.9 1.6 Portfolio weights Portfolio X Portfolio Y 20% 10% 10 30 30 10 10 30 30 20 100% 100% 3 4 5 a. Calculate the betas for portfolios X and Y. b. Compare the risks of these portfolios to the market as well as to each other. Which portfolio is more risky