Examlex

Solved

A Portfolio Beta Is a Weighted Average of the Betas

question 22

Essay

A portfolio beta is a weighted average of the betas of the individual securities which comprise the portfolio.However,the standard deviation is not a weighted average of the standard deviations of the individual securities which comprise the portfolio.Explain why this difference exists.


Definitions:

Social Scientists

Researchers who study the societies and the relationships among individuals within those societies.

Counseling Psychologists

Professionals who specialize in providing psychological support and interventions to help individuals deal with personal and interpersonal challenges.

Adult Educators

Adult Educators specialize in facilitating learning for adults, employing methods and strategies that are effective for adult learners who have different motivations and learning styles compared to children.

Recreation Therapists

Professionals specializing in the use of recreational activities to improve the physical, mental, and emotional well-being of individuals.

Related Questions