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







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