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1. The portfolio weights for a portfolio consisting of multiple securities given multiple states of the economy are based on the:

1) amount of investment in each security

2) beta of each individual security

3) probabilities of occurrence of each economic state

4) expected rates of return of each security given a nomal economic state

2. An investor has $1,000,000 to inviest. Out of this $1,000,000, she invests $1,00,000 in asset A, $200,000 in asset B and the remaining in assetC. The beta of asset A is -0.4, the beta of asset B is 0.6 and the beta asset C is 0.6. What is the beta of the portfolio?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92649216

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