In portfolio, beta of individual security in portfolio represented as their weighted average is classified as

average of portfolio
beta of portfolio
weighted portfolio
collective stocks

The correct answer is: B. beta of portfolio

Beta is a measure of a stock’s volatility relative to the market. A stock with a beta of 1 has the same volatility as the market, while a stock with a beta of 2 is twice as volatile as the market. The beta of a portfolio is the weighted average of the betas of the individual stocks in the portfolio.

A. average of portfolio is not the correct answer because it does not take into account the volatility of the individual stocks in the portfolio.

C. weighted portfolio is not the correct answer because it does not take into account the betas of the individual stocks in the portfolio.

D. collective stocks is not the correct answer because it is not a technical term used in finance.

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