an investor holds a bullish view for the equity, Financial Accounting

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an investor holds a bullish view for the equity

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

σ²_B = 94

σ²_M= 94

σ_A,M = 94

σ_B,M = 94

β_p = 94

Calculate the beta of assets A and B.

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Financial Accounting: an investor holds a bullish view for the equity

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Financial Accounting: an investor holds a bullish view for the equity

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