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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.

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How the beta of a portfolio can equal the market beta if 50 percent of the portfolio is invested in a security that has twice the amount of systematic risk as an average risky security?

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