What does a beta of 0 mean 2024?
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Studied at the University of Tokyo, Lives in Tokyo, Japan.
A zero-beta portfolio is a portfolio constructed to have zero systematic risk or, in other words, a beta of zero. ... Such a portfolio would have zero correlation with market movements, given that its expected return equals the risk-free rate or a relatively low rate of return compared to higher-beta portfolios.
2023-05-13 14:35:07
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Benjamin White
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A zero-beta portfolio is a portfolio constructed to have zero systematic risk or, in other words, a beta of zero. ... Such a portfolio would have zero correlation with market movements, given that its expected return equals the risk-free rate or a relatively low rate of return compared to higher-beta portfolios.