Rose Berry is attempting to evaluate 2 possible portfolios, which consist of the same 5 assets held in different proportions. She is particularly interested in using beta to compare the risks of the portfolios, so she has gathered the data shown in the following table:

Portfolio Weights

Asset Asset beta Portfolio A Portfolio B

1 1.30 10% 30%

2 .70 30 10

3 1.25 10 20

4 1.10 10 20

5 .90 40 20

Totals 100% 100%

a. Calculate the betas for portfolio A and B

b. Compare the risks of these portfolios to the market as well as to each other. Which portfolio is more risky?