Betas seem to be more stable in a portfolio context (group of stocks)than for individual stocks.

Name: Betas seem to be more stable in a portfolio context (group of stocks)than for individual stocks.
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Question

Quizplus · Accepted Answer

Betas measure the volatility of a stock or portfolio compared to the overall market. In a portfolio context, diversification can help reduce the impact of individual stock volatility, making the portfolio beta more stable than the beta of any individual stock within the portfolio.

Betas Seem to Be More Stable in a Portfolio Context