Calculate the beta of assets , Financial Accounting

Assignment Help:

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.


Related Discussions:- Calculate the beta of assets

Finding the present value, We have discussed the computation of the future ...

We have discussed the computation of the future value in the previous sections; here let us work the process in opposite. Let us assume you have won a lottery ticket worth Rs. 1000

Stockholders equity changed, On May 1, 2010, Ziek Corp. declared and issued...

On May 1, 2010, Ziek Corp. declared and issued a 10% common stock dividend. Prior to this dividend, Ziek had 100,000 shares of $1 par value common stock issued and outstanding. The

Quantitative techniques, Evaluate 1-1/3(5/6 - 1/2) ---------------- 2/5 / ...

Evaluate 1-1/3(5/6 - 1/2) ---------------- 2/5 / 2/5(5/6-2/3)

Prepare a balance sheet and trial balance, Requirements: a.   Record the...

Requirements: a.   Record the following transactions in the journal of Howell Consulting. Explanations are not required. b.   Create T accounts for each transaction (Use the

Entity theory method, Entity theory method: Golden Bells Inc. is a for...

Entity theory method: Golden Bells Inc. is a foreign subsidiary of Northern Bells Ltd., a Canadian company.  Northern Bells had purchased 90% of the outstanding shares of Gold

Uncertainty of cash flows, Individuals commonly prefer possession of cash i...

Individuals commonly prefer possession of cash immediately or in the present moment quite than the same amount at any time in the future. Such time preference is fundamentally due

Describe the usiness entities:, Answer all of the parts in this task. Part ...

Answer all of the parts in this task. Part (i) is worth a maximum of 6 Marks - 1 Mark each part. Parts (ii) and (iii) are worth a maximum of 2 Marks each. (i) Describe each of t

Jj, liabilities and its types

liabilities and its types

Investment with ex. div. quotation-executorship laws, Investment with ex. d...

Investment with ex. div. quotation Investment with ex. div. quotation will be debited to the investment account at its ex. div. value. The full impending dividend will also

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd