 Thanks:  0

# Thread: How to solve X for beta/portfolio investment

1. bP = 1,0 = 1.48A + (0.72 * (1-A))

How does one solve for A in this given situation?  Reply With Quote

2.

3. Originally Posted by Luclucluc bP = 1,0 = 1.48A + (0.72 * (1-A))

How does one solve for A in this given situation?
Is it:
\begin{cases}
bP = 1.0 \\
1.0 = 1.48A + (0.72 * (1-A))
\end{cases}
Or is it:
\begin{cases}
bP = 1, \\
0 = 1.48A + (0.72 * (1-A))
\end{cases}  Reply With Quote

4. Assuming that your equation is $\displaystyle 1.48A+ (0.72(1- A))= 0$, first expand the multiplication: $\displaystyle 0.72(1- A)= 0.72- 0.72A$.

That makes the equation $\displaystyle 1.48A+ 0.72- 0.72A= 0$.

Now, combine the two "A" terms: 1.48A- 0.72A= (1.48- 0.72)A= 0.76A.

That makes the equation $\displaystyle 0.76A+ 0.72= 0$.

Subtract 0.72 from both sides: $\displaystyle 0.76A= -0.72$.

Finally, divide both sides by 0.76: $\displaystyle A= -\frac{0.72}{0.76}= 0.9473$....  Reply With Quote

+ Reply to Thread .368421, beta, investment, portfolio, stock #### Posting Permissions 