Q788
In portfolio, beta of individual security in portfolio represented as their weighted average is classified as
A.
average of portfolio
B.
beta of portfolio
AnswerC.
weighted portfolio
D.
collective stocks
Answer: Option B
Solution
Answer: Option B
Solution:
In portfolio, beta of individual security in portfolio represented as their weighted average is classified as beta of portfolio. The beta of a portfolio is the weighted sum of the individual asset betas, According to the proportions of the investments in the portfolio.