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JKCPA
JKCPA , CPA
Category: Finance
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Experience:  Bachelors degree and CPA with Accounting experience.
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Beta of a diversified portfolio is less stable over time

Resolved Question:

We will almost always find that the beta of a diversified portfolio is less stable over time than the beta of a single security. t or f?
Submitted: 6 years ago.
Category: Finance
Expert:  JKCPA replied 6 years ago.

Hello,

Thanks for your question.

The answer is F (false).

Portfolio betas are usually more stable than a single security beta.

Hope this helps!

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