A $1 million portfolio is currently invested in fund A. Fund A beta is 1.50. The portfolio manager considers switching s

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answerhappygod
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A $1 million portfolio is currently invested in fund A. Fund A beta is 1.50. The portfolio manager considers switching s

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A $1 million portfolio is currently invested in fund A. Fund A
beta is 1.50. The portfolio
manager considers switching some of the portfolio into fund B that
has a beta of 0.60. What
would be the new portfolio dollar allocation (investment in A and
in B) that will achieve his
portfolio beta of 1.05 goals?
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