Finding the Beta for a Portfolio Isn't Obvious: An Educational Example

Autor/inn/en	Chong, James; Jennings, William P.; Phillips, G. Michael
Titel	Finding the Beta for a Portfolio Isn't Obvious: An Educational Example
Quelle	In: American Journal of Business Education, 11 (2018) 1, S.15-22 (8 Seiten) PDF als Volltext kostenfreie Datei Verfügbarkeit
Sprache	englisch
Dokumenttyp	gedruckt; online; Zeitschriftenaufsatz
ISSN	1942-2504
Schlagwörter	Business Administration Education; Marketing; Investment; Business Skills; Computation; Teaching Methods; Risk Assessment + Suchen Sie Ihr Suchwort? Investments; Geldanlage; Investiton; Teaching method; Lehrmethode; Unterrichtsmethode; Risikoabschätzung
Abstract	When a portfolio is not actively managed to maintain a fixed investment percentage in each asset but rather maintains a fixed number of shares for each asset, the portfolio weights will change over time because the market returns of the different assets will not be the same. Consequently, portfolio betas computed as a linear combination of asset betas, which is the usual practice, will be different from betas computed using regression techniques on portfolio returns as is done when evaluating individual assets and mutual funds. The alternative approaches can result in quite different beta statistics and, consequently, inconsistent decisions depending on which method is used. (As Provided).
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Erfasst von	ERIC (Education Resources Information Center), Washington, DC
Update	2020/1/01