Calculate the beta of assets , Financial Accounting

An investor holds a bullish view for the equity market over the next twelve months and wishes to recalibrate his portfolio to reflect this view. The investor's portfolio consists of two assets, asset A and asset B. The investor wants to gear the portfolio beta to 1.2. What weights must beheld in asset A and asset B to generate the desired portfolio beta level? Round all answers to two decimal places.

Inputs

σ24 = 94

σ2B = 94

σ2M= 94

σA,M = 94

σB,M = 94

βp = 94

Calculate the beta of assets A and B.

Posted Date: 2/20/2013 5:09:28 AM | Location : United States







Related Discussions:- Calculate the beta of assets , Assignment Help, Ask Question on Calculate the beta of assets , Get Answer, Expert's Help, Calculate the beta of assets Discussions

Write discussion on Calculate the beta of assets
Your posts are moderated
Related Questions
im doing compound interest my calculator doest have anxy butyx cant do nothing with the ten being the power of .9

Consequences of adjudication The consequences of the making of the adjudication order are: 1. The order must be advertised in the gazette and a local paper; 2. The ownershi

Q. What do you mean by Inflation? Predicts of future inflation of sales prices and variable costs should be prepared Therefore that a nominal NPV evaluation is able to be under

Question: Airways Catering prepares dinner for several airlines, and sales average 500,000 dinners per month. The cost of each dinner is made up principally of the cost of meat

1.what are the various fields of accounting and how do they differ? 2. how are revenues and expenses affect the owners' equity account? 3. why are revenues and expenses recor

I need help with assignment completeion

Natural Furniture Company manufactures three outdoor products, benches, chairs, and tables. Every product must pass by the following departments before it is shipped: sanding, sawi

Describe Following questions:- Q.1 What organizations are responsible for governing financial reporting? What is the role of each organization? How have the roles changed in the

a) DELL computers sell 100 PCs at Rs.42,000. The variable expenses amount to Rs.28,000 per PC. The total fixed expenses is Rs.14,00,000. Prepare an income statement.   b.) Ca

You are the Genesis accountant and have taken a class recently in financing. You agree to prepare a PowerPoint presentation of approximately 6-8 minutes using the examples and info