beta scores below 1.0 are considered defensive (less sensitive to market fluctuations) while beta scores above 1.0 are considered offensive or aggressive meaning they are more sensitive to market fluctuations.
The beta of an Aggressive portfolio is typically higher than 1, indicating that the portfolio is expected to be more volatile than the overall market. This means that when the market moves up or down, the Aggressive portfolio is likely to experience larger price fluctuations. Investors in Aggressive portfolios are seeking higher returns but also accept higher risk.
She made a judicious decision to invest in a diversified portfolio to minimize risk.
Aggressive driving refers to behavior on the road that is dangerous, such as speeding, tailgating, weaving in and out of traffic, and road rage. It poses a risk to other drivers and can lead to accidents or confrontations.
Aggressive driving itself is usually not considered a criminal offense, but specific actions like road rage, reckless driving, or endangering others can lead to criminal charges such as reckless driving or assault. It's important to drive safely and follow traffic laws to avoid aggressive driving situations.
The verb form of harassment is "harass." It means to subject someone to aggressive pressure or intimidation.
Aggressive, opinionated, confrontational, stubborn.
The beta of a portfolio is the weighted average of individual betas of assets in that portfolio. There is an example of portfolio beta calculation here: http://www.riskyreturn.com/portfolio_beta.html
The beta of a portfolio is the weighted average of individual betas of assets in that portfolio. There is an example of portfolio beta calculation here: http://www.riskyreturn.com/portfolio_beta.html
The beta of a portfolio is the weighted average of individual betas of assets in that portfolio. There is an example of portfolio beta calculation here: http://www.riskyreturn.com/portfolio_beta.html
The beta of a portfolio is the weighted average of individual betas of assets in that portfolio. There is an example of portfolio beta calculation here: http://www.riskyreturn.com/portfolio_beta.html
Simple scenario: Taking into account beta of index is set at 1.0; Lets say market increases by 5% Beta of 1.5 would indicate that the particular portfolio would increase by 7.5% as for beta of -1.5, the portfolio would decrease by 7.5% Beta is a measure of sensitivity of market base on the reference index. Negative beta would mean that the portfolio is inversely proportional to market performance.
beta
Yes. That's what it means. The "beta of 2" is a comparison to the market portfolio. The volatility measure is usually annualized standard deviation and the "market portfolio" is commonly the S&P 500 Index, but should be a broad index that is similar to the securities in the portfolio. The market portfolio used for a portfolio of international securities could be the MSCI EAFE Index, for example.
The portfolio consists of four stock: A, B, risk-free asset and the market. The weights will be 0.25 each and the portfolio beta = (0.25 x 0.8) + (0.25 x 1.2) + (0.25 x 0) + (0.25 x1) = 0.75 Akshita Mehta
The pension fund would have to adjust its portfolio of equities so that it purchased ones with a higher beta.
Beta.
Say, you hold 1,000 shares of Bharti Airtel, 300 shares of Infosys, 500 shares of Reliance Industries and 700 shares of Hindustan Unilever. In order to completely hedge the portfolio, you need to arrive at the total beta value of your holdings. To begin with, get the beta of individual stocks against the index (available in NSE monthly newsletters). Now, multiply individual beta value of stocks to the current value of investment in that stock. Then, divide the sum of all these numbers with the total value of your investment (current) to arrive at the overall beta of your portfolio.
Based on your risk tolerance level we can form 3 basic kinds of portfolios. 1. Aggressive Portfolio - For individuals with high risk tolerance 2. Balanced Portfolio - For individuals with average risk tolerance 3. Conservative Portfolio - For individuals with low risk tolerance You have to decide in which category you would fall into. It is not mandatory to choose only these 3 portfolio's. You can opt to be somewhere between an aggressive and balanced portfolio wherein your investments would neither fall under aggressive category nor would they fall under balanced. Your investment objective & horizon and risk taking ability would determine the kind of portfolio that would suit you.