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Author Question: You own two mutual funds, both of which plot on the security market line. Fund A has an expected ... (Read 137 times)

james

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You own two mutual funds, both of which plot on the security market line. Fund A has an expected return of 12% and a beta of 0.8. Fund B has an expected return of 18% and a beta of 1.4. If your portfolio beta is the same as the market portfolio, what proportion of your portfolio is invested in fund A?
◦ wA = 0.25
◦ wA = 0.33
◦ wA = 0.50
◦ wA = 0.67
◦ wA = 0.75


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Marked as best answer by james on Apr 25, 2021

bookworm410

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james

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Reply 2 on: Apr 25, 2021
Wow, this really help


AmberC1996

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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