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?
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AFMJun-12 Tisa Co Question
12y ago#1If 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)
Thanks for your reply.
I will definitely have a watch of the lecture.
12y ago#3You are welcome :-)
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