How do you calculate the beta of a portfolio?

How do you calculate the beta of a portfolio?



Answer: The relevant risk of any security is its beta, the sensitivity of its return to the return on the market portfolio. The beta of a portfolio, a group of securities, is the weighted average of the betas of each security, where each security's weight is its fraction of the portfolio value.

Comments

Popular posts from this blog

What is JAD and how are users involved? What are advantages and disadvantages of JAD?

What are the three dimensions to business problems? Give an example of each.

A laboratory assistant prepared solution of 0.8 M, 0.6 M, 0.4 M, and 0.2 M sucrose, but forgot to label them. After realizing the error, the assistant randomly labeled the flasks containing these four unknown solutions as flask A, flask B, flask C, and flask D.