What Is the Beta of a Portfolio with a Large

question 5

Essay

What is the beta of a portfolio with a large number of randomly selected stocks?

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Definitions:

Social Choice

A theoretical framework for analysis of combining individual preferences, interests, or welfare to reach a collective decision or social welfare in a given society.

Aggregating

The process of combining multiple pieces of data or information into a single comprehensive whole.

Incentives

Refers to stimuli that motivate individuals or entities to perform certain actions or behaviors.

Majority Rule Voting

A voting system in which each member has one vote, and decisions are made by a majority of the votes cast, typically more than half.