You own two risky assets, both of which plot on the security market line Asset A has an expected return of 12 87 and a beta of 1 38 Asset B has an expected return of 14 37 and a beta of 2 45 If your portfolio beta is the same as the market portfolio, what proportion your funds are invested in Asset...

Let the funds invested in asset A is ...

You own two risky assets, both of which plot on the security market line. Asset A has

Question:

You own two risky assets, both of which plot on the security market line. Asset A has an of 12.87% and a beta of 1.38. Asset B has an of 14.37% and a beta of 2.45. If your beta is the same as the market what proportion your funds are invested in Asset A?
The weight of Asset A in your is .
Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...