What is the beta of the fund

Assignment Help Finance Basics

Reference no: EM131925927

Question: The Beta Bear Plus ETF (Exchange Traded Fund) is constructed so that its average return is equal to two times (200%) the additive inverse (opposite) of the average return on the market index. In other words, Upper E left parenthesis k Subscript p Baseline right parenthesis equals negative 2 times Upper E left parenthesis k Subscript Upper M Baseline right (Ekp=-2×EkM.) Where k Subscript pkp is the return on the fund and k Subscript Upper MkM is the return on the market portfolio. This ETF is designed for investors who want to make money when the market falls. If the risk-free return is 3.90% and the expected return on the market is 10.60% , then what is the beta of this fund?

The beta of the Beta Bear Plus ETF is

Reference no: EM131925927

Questions Cloud

A discussion of your learning outcomes from the article : As a group, present a discussion of your learning outcomes from the article review. Present your learning outcomes using power points.

Find a publicly available research report : Find a publicly available research report (local or international) and critically comment on the methodology adopted for the research purpose.

What is the consumer surplus from concert tickets : The demand curve for tickets to the George Winston concert (with special guest star, Kenny G) is given as follows:

Determine the least amount the investor can invest : Determine the least amount the investor can invest and how that investment should be allocated between the three stocks.

What is the beta of the fund : The Beta Bear Plus ETF (Exchange Traded Fund) is constructed so that its average return is equal to two times (200%) the additive inverse (opposite).

Design decision how you want to maintain your program : The program must not use non-standard or third-party libraries - The program must be implemented by using objects and classes. Stand alone functions other

Describe the most important business area : Determining whether or not you believe penetration tests are necessary and an integral part of a security program and discuss why or why not.

How consumers make economic decisions : You have been asked to assist Starbuck's marketing department to better understand how consumers make economic decisions.

Differences between the types of threats and vulnerabilities : The evoluation of the Internet has resulted in an exponential growth in exploits, malware, and other types of attacks for both individuals and for e-Commerce.

User Account

All Pages