Respuesta :
The beta of a portfolio is the weighted sum of the betas of the individual assets, according to the proportions of the investments in the portfolio. For example, if 50% of the money is in A stock with a beta of 2.00, and 50%
A beta value below 1.0 means the stock is theoretically less volatile than the market. Including this security in a portfolio makes it less risky than the same portfolio without the security.
A portfolio beta is a weighted average of the betas of the individual securities contained in the portfolio. A stock has a beta of 1.25 and a reward/risk ratio of 5.95%. If the risk-free rate is 4%, what is the expected return on the stock? Expected stock return = 5.95% x 1.25 + 4% = 11.4375% = 11.44%
Beta is a measure of a stock's volatility relative to the broader stock market, typically measured by the S&P 500 Index. A beta of two means the stock is twice as volatile as the broader stock market. market. A beta of 0.50 means the stock is half as volatile.
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