You are trying to construct a mimicking portfolio using 3 assets. The target Beta on your...

You are trying to construct a mimicking portfolio using 3 assets. The target Beta on your portfolio is -1.5. Asset 1 has a beta of 0, Asset 2 has a Beta of 1 and Asset 3 has a Beta of 2.5. You are required to hold 10% of your mimicking portfolio in Asset 3.

The resulting weights for the other two assets in the mimicking portfolio are w(asset 1) = _________ % and w(asset 2) = _______%

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You are trying to construct a mimicking portfolio using 3 assets. The target Beta on your...

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