Asked by
Saumil Kurani
on Nov 07, 2024
Verified
If the portfolio beta is greater than one then the portfolio has more risk than the overall market.
Portfolio Beta
An indicator of the level of fluctuation, or inherent risk, within an investment portfolio relative to the overall market.
Overall Market
Refers to the aggregated performance of all investment assets or stocks within a particular market or index.
Greater Than One
A mathematical condition indicating that a number or quantity is larger than the value of one.
- Analyze and interpret the beta value of a portfolio to understand its risk exposure relative to the market.
Verified Answer
AM
Learning Objectives
- Analyze and interpret the beta value of a portfolio to understand its risk exposure relative to the market.