Meaning PORTFOLIO BETA: Used in the context of general equities. The beta of a portfolio is the weighted sum of the individual asset betas, According to the proportions 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 beta is 1.50. Portfolio beta describes relative volatility of an individual securities portfolio, taken as a whole, as measured by the individual stock betas of the securities making it up. A beta of 1.05 relative to the S;P 500 implies that if the S;P's excess return increases by 10% the portfolio is expected to increase by 10.5%
More terms such as Portfolio beta in Dictionary P.
- Definition Performance Evaluation:
- Examples manager's results, which involves, first, determining whether the money manager added value by outperforming the established benchmark (performance measurement) and, second, determining how the portfolio beta definition.
- Definition Par Bond:
- Examples A bond trading at its face value portfolio beta explain.
- Definition Property Rights:
- Examples Rights of individuals and companies to own and use property as they see fit and to receive the stream of income that their property generates portfolio beta what is.
- Definition People Pill:
- Examples A form of poison pill providing that the entire management threatens to resign in the event of a takeover portfolio beta meaning.
- Definition Prearranged Trading:
- Examples Possibly fraudulent practice whereby commodities dealers carry out risk-free trades at predetermined prices to acquire tax advantages portfolio beta abbreviation.
