Hi, Can you please confirm that the beta of the passive portfolio M is 1 while that of the active portfolio is the weighted average of the betas of the individual stocks? Thanks
if by portfolio M you mean market portfolio…then by definition it will have a beta of 1 against itself…
I think you are right wonder
there is concept checker at the at end of Treynor Black from Schweser calculating the covariance if you would like to have a look at it.
which one is it ?