Capital asset pricing model (CAPM) For the asset shown in the following table, use the capital asset pricing model to find the required return. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Market Risk-free rate, RF 9% return, I'm Beta, b 1.5 14% The required return for the asset is %. (Round to two decimal places.) Portfolio betas Personal Finance Problem Rose Berry is attempting to evaluate two possible portfolios, which consist of the same five 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: B. a. Calculate the betas for portfolios A and B. Data table b. Compare the risks of these portfolios to the market as well as to each other. Which portfolio is more risky? - in order to copy the contents of the data table below (Click on the icon here into a spreadsheet.) a. The beta for portfolio A is (Round to four decimal places.) Asset Asset beta 1 2 Portfolio weights Portfolio A Portfolio B 20% 25% 40% 15% 10% 20% 10% 15% 20% 25% 100% 100% 1.62 0.62 1.98 1.71 0.35 3 4 5 Totals Interpreting beta A firm wishes to assess the impact of changes in the market return on an asset that has a beta of 0.9. a. If the market return increased by 13%, what impact would this change be expected to have on the asset's return? b. If the market return decreased by 10%, what impact would this change be expected to have on the asset's return? c. If the market return did not change, what impact, if any, would be expected on the asset's return? d. Would this asset be considered more or less risky than the market? a. If the market return increased by 13%, the impact on the asset's return is %. (Round to one decimal place. Enter a negative percentage number if the asset return decreases.)