Zero-Beta Portfolio

Zero-Beta Portfolio

An investment portfolio that has zero beta is one that has zero systematic risk i.e. has no market risk – so doesn’t move with the market, either positively or inversely. It can be a portfolio constituted by a portfolio of risky securities that have zero covariance with the market. Such a portfolio can not be expected to return more than the risk-free rate.

logo-animationlogo-animationlogo-animation

Related terms