What do you think the Beta (β) of your portfolio would be if you owned half of all the stocks traded on the major exchanges?
Answer: 1.0
If you own half the shares in the market, the portfolio should be very highly correlated with the market return, and should have a similar beta. Market beta is defined as 1.0
more or less 1.0
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Verified answer
Answer: 1.0
If you own half the shares in the market, the portfolio should be very highly correlated with the market return, and should have a similar beta. Market beta is defined as 1.0
more or less 1.0