Asked by
Daveia Anderson
on Dec 02, 2024
Verified
The beta of a portfolio is a weighted average of the betas of all the investments held within the portfolio.
Beta
A measure of the volatility, or systematic risk, of a security or portfolio compared to the market as a whole.
Portfolio
A diverse collection of financial investments like stocks, bonds, commodities, and real estate held by an individual or an institutional investor.
- Understand portfolio beta as a measure of systematic risk and how it is computed from individual investment betas.
Verified Answer
AB
Learning Objectives
- Understand portfolio beta as a measure of systematic risk and how it is computed from individual investment betas.