If we put a of our wealth into asset X, with systematic risk of x, and b of our wealth into asset Y, with systematic risk of y, then the beta of the resulting portfolio, p, is simply the weighted average of the betas of individual securities Prove the equation portfolio bate P a x b y ...

This can be proved using CAPM model According to CAPM model Expected return Risk free r ...

If we put a % of our wealth into asset X, with systematic risk of x, and

Question:

If we put a % of our wealth into asset X, with systematic risk of βx, and b% of our wealth into asset Y, with systematic risk of βy, then the beta of the resulting βp, is simply the weighted average of the betas of individual securities: Prove the equation bate βP = a βx + b βy.
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...