DSquaredSlim

yellayella Wrote:
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> concering schweser,concept checkers, page
> 261.question five says that the beta of the
> marketportfolio and of portfolia A are
> identical.
> the beta of portfolio A is 1 which we derived from
> the calculation. i don't see how we get a beta of
> 1 for the market index? because only the market
> index variance of 0.04 is given... ? any ideas? or
> what am I missing?

Beta is a measure of risk compared with the market portfolio. As the market portfolio is the benchmark, it's beta is always 1.