Meaning ZERO-BETA PORTFOLIO: A portfolio constructed to have zero systematic risk, similar to the risk-free asset, that is, having a beta of zero
More terms such as Zero-beta portfolio in Dictionary Z.
- Definition Zero-Balance Account (ZBA):
- Examples A checking account in which zero balance is maintained by transfers of funds from a master account in an amount only large enough to cover checks presented zero-beta portfolio.
- Definition Zero-Coupon Bond:
- Examples A bond in which no periodic coupon is paid over the life of the contract. Instead, both the principal and the interest are paid at the maturity date zero-beta portfolio.
- Definition Zero Prepayment Assumption:
- Examples The assumption of payment of scheduled principal and interest with no payments zero-beta portfolio.
- Definition Zero-Coupon Convertible Security:
- Examples convertible into the common stock of the issuing company after the stock reaches a certain price, using a put option inherent in the security.Also refers to zero-coupon bonds, which are convertible zero-beta portfolio.
- Definition Zero-Investment Portfolio:
- Examples A portfolio of zero net value established by buying and shorting component securities, usually in the context of an arbitrage strategy zero-beta portfolio.