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 hown in the following table. Portfolio weights Asset Asset beta Portfolio X Portfolio Y 1 2.5 20% 10% 2 0.8 10 30 3 1.2 30 10 4 0.9 10 30 5 1.6 30 20 Totals 100% 100% and the Required Rate of Return Calculate the betas for portfolios X and Y. Compare the risks of these portfolios to the market as well as to each other. Which portfolio is riskier