DEFINITION of 'ZeroBeta Portfolio'
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.
INVESTOPEDIA EXPLAINS '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.
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Asset Management
1. The management of a client's investments by a financial services ... 
RiskFree Asset
An asset which has a certain future return. Treasuries (especially ... 
Beta
A measure of the volatility, or systematic risk, of a security ... 
ZeroInvestment Portfolio
A group of investments which, when combined, create a zero net ... 
Sharpe Ratio
A ratio developed by Nobel laureate William F. Sharpe to measure ... 
ExchangeTraded Fund (ETF)
A security that tracks an index, a commodity or a basket of assets ...

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