Learn about the Fama French Three Factor Model, its formula, and how it enhances portfolio analysis by incorporating size and ...

Portfolio beta is the measure of an entire portfolio’s sensitivity to market changes while stock beta is just a snapshot of an individual stock’s volatility.

Learning how to calculate your portfolio beta can help you manage risk and maximize your profit potential. Find Out More.

The Treynor ratio uses a portfolio's "beta" as its risk. Beta measures the volatility of an investment relative to the stock market, generally the S&P 500 index, which is given a beta of one.

Because beta is related to variability, a high alpha portfolio is likely to be less volatile than a portfolio with the same total return but a lower alpha. Here are the disadvantages: ...

Because such a portfolio has a beta of zero, it is called the Zero-Beta Portfolio. In the example in Exhibit 1, the Zero-Beta Portfolio is about 119% in Security A and negative 19% in Security B.