Portfolio Beta Score

Portfolio Beta Score The relative volatility of an individual portfolio of shares taken as a whole. It is measured by the BETA COEFICIENT of the shares making up the portfolio. A beta of 1 makes the portfolio as volatile as the market; a beta of 1+ makes it more volatile, while 1 – makes it less so. Conservative portfolio managers will aim at a 1 – beta, while those who recommend more risk, and consequently the prospect of more gain, will make up a portfolio of a beta of more than 1

You can leave a response, or trackback from your own site.

Leave a Reply

You must be logged in to post a comment.

Powered by WordPress