Beta of a stock portfolio

pietro · Jul 30, 2005

Hi All, i wasnt sure where to post this question but, its kind of a basic question, so here goes. Right i know how to calculate the beta of a stock however to calculate the beta of the entire portfolio im not too sure on. would it simply be the average? eg. adding up all the betas of all the relivent stocks and dividing by the number shares in the portfolio?

Thank you

Pietro

the blades · Jul 30, 2005

pietro said:
Hi All, i wasnt sure where to post this question but, its kind of a basic question, so here goes. Right i know how to calculate the beta of a stock however to calculate the beta of the entire portfolio im not too sure on. would it simply be the average? eg. adding up all the betas of all the relivent stocks and dividing by the number shares in the portfolio?

Thank you

Pietro

Hello Pietro,

Yes - you've got it. Providing the stocks are equally weighted - otherwise you'd need to adjust accordingly.

Cheers,
UTB

pietro · Jul 30, 2005

beta Q

thanks Blades thought that was it.

Pietro

Beta of a stock portfolio

pietro

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the blades

Experienced member

pietro

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