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A portfolio whose current value of dolar 100,000 consist of three assets, call these assets as 1,2and 3 and the composition of the portfolio is
A portfolio whose current value of dolar 100,000 consist of three assets, call these assets as 1,2and 3 and the composition of the portfolio is 10percentage,20 percentage and 70percentage in assets 1,2 and 3 respectively. Suppose the investor wants to rebalance her portfolio by increasing the weight of the second assets from 20 percentage to 30 percentage,and simultaneously reducing the weight of the third asset from 70percentage t0 50 percentage.She does not want any change in the current level of portfilio beta that is,she wants beta of the rebalanced portfolio the same as beta of the original portfilio
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