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FinanceQ&A LibraryJason Jackson is attempting to evaluate two possible portfolios consisting of the same five 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: . a. Calculate the betas for portfolios A and B. b. If the risk-free rate is 1.8% and the market return is 7.8%, calculate the required retum for each portfolio using the CAPM. Review Only Click the icon to see the Worked Solution. a. The beta of portfolio A is (Round to three decimal places.) The beta of portfolio B is (Round to three decimal places.) b. The required return of portfolio A is %. (Round to two decimal places.) The required return of portfolio B is %. (Round to two decimal places.) 9: Data Table (Click on the icon here in order to copy its contents of the data table below into a spreadsheet.) Portfolio Weights Asset Asset Beta Portfolio A Portfolio B 1 1.34 15% 34% 2 0.72 33% 12% 3 1.27 13% 18% 4 1.15 15% 27% 5 0.88 24% 9% Total 100% 100%Start your trial now! First week only $4.99!*arrow_forward*

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