Jeanne Lewis is attempting to evaluate two possible portfolios consisting of the same five assets...
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Accounting
Jeanne Lewis is attempting to evaluate two possible portfolios consisting of the same five 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 thedata: (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
1.30
10
30
2
0.70
30
10
3
1.25
10
20
4
1.10
10
20
5
0.90
40
20
Total
100
100
a.Calculate the betas for portfolios A and B.
b. calculate the The required return of portfolios A and B .
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