To adjust the beta of the portfolio has two steps-
1. to adjust allocation to equity- I got that.
2. To adjsut beta - Here I do not understand how the value of portfolio to adjust total beat is taken as 154 MM and not 182. All we have done is sell future but still the portfolio remains at 182 - right?
1. to adjust allocation to equity- I got that.
2. To adjsut beta - Here I do not understand how the value of portfolio to adjust total beat is taken as 154 MM and not 182. All we have done is sell future but still the portfolio remains at 182 - right?