A Portfolio's Beta Coefficient Is the Weighted Average of the Betas

question 40

True/False

A portfolio's beta coefficient is the weighted average of the betas of the individual stocks, where the weights are the relative amounts invested in each stock.

---

Definitions:

Learning Outcomes

Statements that specify what learners will know or be able to do as a result of a learning activity, often used to assess the effectiveness of educational programs.

Curriculum

A structured set of educational and instructional materials and guidelines designed to achieve specific learning objectives.

Scope and Sequence

An outline of the topics and order in which they will be taught in a curriculum over a specific period of time.

Quantity of Content

The amount of material or information provided or available in a given context.