The beta of a portfolio is the weighted sum of the individual asset betas, According to the proportions of the investments in the portfolio.
A beta value that is less than 1.0 means that the security is theoretically less volatile than the market. Including this stock in a portfolio makes it less risky than the same portfolio without the stock.
Beta is a measurement of how volatile a stock is relative to the overall stock market, usually as measured by the S&P 500 index. A beta of two means the stock is twice as volatile as the overall market. A beta of 0.50 means the stock is half as volatile.
The beta of a stock or portfolio will tell you how sensitive your holdings are to systematic risk, where the broad market itself always has a beta of 1.0. High betas indicate greater sensitivity to systematic risk, which can lead to more volatile price swings in your portfolio, but which can be hedged somewhat.
To learn more about individual please click on below link
https://brainly.com/question/19537863
#SPJ4
