Bob and Mary own the same assets in each of their portfolios. Each has a different allocation of their investments across the various securities contained in the portfolio
The portfolios of Bob and Mary must have equal betas because they are investing in the same securities, just in different proportions.
Indicate whether the statement is true or false.
Answer: FALSE
Explanation: Portfolio betas are the weighted average of the individual asset betas that comprise the portfolio. If you change the weights, you could change the portfolio beta.
Business
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