- This topic has 3 replies, 2 voices, and was last updated 12 years ago by
.
Viewing 4 posts - 1 through 4 (of 4 total)
- Posts
Hello. Can someone help with regards to the above question? If the beta asset for the portfolio is 1.217 and the beta asset for the other activities is 1.078 why isn’t the component beta asset just the difference between the two?
If two streams with different betas are combined, then the overall beta is the weighted average of the individual betas.
(It may be worth watching my free lecture on here on CAPM)
Viewing 4 posts - 1 through 4 (of 4 total)
- You must be logged in to reply to this topic.