Assume that two securities A and B constitute the market portfolio. Their proportions and variance are 0.39, 160 and 0.61, 340, respectively. The covariance of the two securities is 190. Calculate the betas of the two securities.© BrainMass Inc. brainmass.com May 20, 2020, 12:12 pm ad1c9bdddf
First we calculate the ...
The solution shows all the calculations necessary to arrive at the betas for the two securities.