The beta bear plus etf exchange traded fund is constructed


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

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Financial Management: The beta bear plus etf exchange traded fund is constructed
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