The Beta of a Portfolio Is the Weighted Average of the Betas

question 79

True/False

The beta of a portfolio is the weighted average of the betas of all of the assets in the portfolio.

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Definitions:

Contingent Liability

A potential financial obligation depending on the outcome of future events, not yet confirmed as a liability.

Future Event

A future event is an occurrence or situation that is expected or anticipated to happen at a later date, which can impact financial planning and decisions.

Current Liabilities

Obligations or debts that a company is expected to pay within one year or within its normal operating cycle, whichever is longer.

Balance Sheet

A summary report detailing a firm's assets, liabilities, and equity of shareholders at a certain time.