just came accross a portfolio question, Active portfolio has a beta of 0.9, indication of the low beta is that the active portfolio has high level of diversifiablt risk. I don;t get it… help Thanks
p.536 says otherwise. Weight active P increases as Beta increases coz of the greater sys risk it adds - and this increases the adv of the mispriced securities. what q are u looking at?
schweser 2010 vol 2 exam 1 PM. Thanks for actually looking into this. I will look into it further too.