Portfolio beta

Definition: [crh] Used in the context of general equities. The beta of a portfolio is the weighted sum of the individual asset betas, According to the proportDefinition: ions of the investments in the portfolio. E.g., if 50% of the money is in stock A with a beta of 2.00, and 50% of the money is in stock B with a beta of 1.00,the portfolio beDefinition: ta is 1.50. Portfolio beta describes relative volatilityof an individual securities portfolio, taken as a wholDefinition: e, as measured by the individual stock betas of the securities making it up. A beta of 1.05 relative to the S&P 500 iDefinition: mplies that if the S&P's excess return increases by 10% the portfolio is expected to increase by 10.5%.

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