would generally find that the beta of a single security is more stable over time than the beta of a diversified portfolio.

Question

Quizplus · Accepted Answer

The beta of a single security is typically more volatile and subject to fluctuations over time compared to the beta of a well-diversified portfolio. This is because the diversification of the portfolio reduces the impact of idiosyncratic or company-specific risks, making the overall risk and beta of the portfolio more stable over time.

Would Generally Find That the Beta of a Single Security