Based on current dividend yields and expected capital gains, the expected rates of return on portfolios A and B are 11% and 14%, respectively. The beta of Ais 0.8 while that of Bis 15. The T-bill rate is currently 6%, while the expected rate of return of the S&P 500 Index is 12%. The standard deviation of portfolio A is 10% annually, while that of Bis 31%, and that of the index is 20% a-1. Calculate the return predicted by CAPM for a portfolio with a beta of 0.8. (Round your answer to 1 decimal place.) Return % a-2. Calculate the return predicted by CAPM for a portfolio with a beta of 1.5. Return % b. If instead you could invest only in bills and one of these portfolios, which would you choose? O Portfolio A O Portfolio B