What is a 'ZeroBeta Portfolio'
A zerobeta portfolio is a portfolio constructed to have zero systematic risk or, in other words, a beta of zero. A zerobeta portfolio would have the same expected return as the riskfree rate. Such a portfolio would have zero correlation with market movements, given that its expected return equals the riskfree rate, a low rate of return.
BREAKING DOWN 'ZeroBeta Portfolio'
A zerobeta portfolio is quite unlikely to attract investor interest in bull markets , since such a portfolio has no market exposure and would therefore underperform a diversified market portfolio. In a bear market, however, it may attract some interest, although even in such a case, investors are likely to question whether merely investing in riskfree, shortterm treasuries is a better and cheaper alternative to a zerocost portfolio.

Portfolio Return
The monetary return experienced by a holder of a portfolio. Portfolio ... 
Capital Market Line  CML
A line used in the capital asset pricing model to illustrate ... 
Treynor Index
A measure of riskadjusted performance of an investment portfolio. ... 
Trading Effect
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Risk Premium
The return in excess of the riskfree rate of return that an ... 
Modern Portfolio Theory  MPT
A theory on how riskaverse investors can construct portfolios ...

Investing
RiskFree Rate of Return
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Investing
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Active Trading
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Fundamental Analysis
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CAPM helps you determine what return you deserve for putting your money at risk. 
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Trading Strategies
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Trading Strategies
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Term
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Portfolio investment involves buying securities with the expectation of earning a return on them.

What is the correlation between equity risk premium and risk?
Learn about the relationship between the riskfree rate of return and the equity risk premium, and understand how the riskfree ... Read Answer >> 
What nations other than the U.S. have riskfree interest rates?
Find out which countries have riskfree rates of returns. This is typically the yield on a 3month note, and it can be negative ... Read Answer >> 
How accurate is the equity risk premium in evaluating a stock?
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How is the expected market return determined when calculating market risk premium?
Find out how the expected market return rate is determined when calculating market risk premium and how these figures are ... Read Answer >> 
A manager wishes to construct a portfolio by investing 25% in a stock half as volatile ...
The correct answer is: b) Step 1. Find Portfolio Beta Beta of the Portfolio = (.25)(.5)+(.25)(2)+(.25)(1)+(.25)(0) = 0.125 ... Read Answer >> 
What is the formula for calculating the capital asset pricing model (CAPM)?
Learn about the capital asset pricing model, or CAPM, and how this formula is used to determine the expected rate of return ... Read Answer >>