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.

RiskFree Rate Of Return
The theoretical rate of return of an investment with zero risk. ... 
RiskFree Return
The theoretical rate of return attributed to an investment with ... 
RiskFree Asset
An asset which has a certain future return. Treasuries (especially ... 
Portfolio Return
The monetary return experienced by a holder of a portfolio. Portfolio ... 
Portfolio Investment
A holding of an asset in a portfolio. A portfolio investment ... 
Inefficient Portfolio
An inefficient portfolio is an investment portfolio that delivers ...

Professionals
Capital Market Theory
CFA Level 1  Capital Market Theory. Learn the assumptions behind the capital market theory. Shows what happens to a portfolio's return and variance when adding a riskfree asset. 
Investing
RiskFree Rate of Return
The riskfree rate of return is the theoretical rate of return of an investment with zero risk. The riskfree rate represents the interest an investor would expect from an absolutely riskfree ... 
Investing
Understanding Market Risk Premium
Market risk premium is equal to the expected return on an investment minus the riskfree rate. The riskfree rate is the minimum rate investors could expect to receive on an investment if it ... 
Investing
Measure Your Portfolio's Performance
Learn three ratios that will help you evaluate your investment returns. 
Investing Basics
More Ways to Evaluate Portfolio Performance
The Jensen measure is another tool investors use to include risk when measuring portfolio performance. 
Professionals
The Workings Of Equity Portfolio Management
Achieve analytical efficiency by applying your evaluation to a key set of stocks. 
Professionals
Rate of Return Basics
CFA Level 1  Rate of Return Basics. Learn the components of the required rate of return. Discusses the various forms of riskfree rates, which serve as the base for return. 
Professionals
Measuring Portfolio Returns
NASAA Series 65: Section 16 Measuring Portfolio Returns. In this section different types of risk measures discussed and some sample questions. 
Options & Futures
How Risk Free Is The RiskFree Rate Of Return?
This rate is rarely questioned  unless the economy falls into disarray. 
Options & Futures
Avoid Future Shock By Protecting Your Portfolio With Futures
Worried about protecting your portfolio of diversified stocks and assets? Using futures with correct strategies can help.

How is it possible for a rate to be entirely riskfree?
Find out whether there really is such a thing as a riskfree rate of return, and learn why taking the idea of riskfree rates ... Read Answer >> 
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 >> 
How is the riskfree rate of interest used to calculate other types of interest rates ...
Learn how the riskfree rate is used to compare the yields on bonds, and understand how Tbills are used as a proxy for the ... Read Answer >> 
How accurate is the equity risk premium in evaluating a stock?
Learn about the drawbacks of using the equity risk premium to evaluate a stock, and understand how it is calculated using ... 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 is the riskfree rate determined when calculating market risk premium?
Learn how the riskfree rate is used in the calculation of the market risk premium, and understand why Tbills provide the ... Read Answer >>