You must specify the level of

beta risk of your portfolio that you intend to maintain and show how the beta values of the shares you have chosen produce/meet the chosen beta level for the portfolio.

As a matter of fact, we found out that the

beta risk is largely variable, depending on the industry and that it diminishes in terms of the venture's age.

1995) using the dual-beta framework find consistent and significant relationship between beta and return and positive payment for

beta risk.

Time-varying

beta risk for Australian industry portfolios: an exploratory analysis.

1) Alternatively, as emphasized by Cochrane (2005) and Kan, Robotti, and Shanken (2009), one can use covariance risks instead of

beta risks in the CSR.

If we take the efficiency improvement too far we are likely minimizing alpha rather than

beta risk.

The volatility of log closing price change tends to understate the

beta risk and Sharpe ratio.

One of these is common time-variation in the fund's

beta risk and the expected market risk premium, related to public information on the state of the economy.

Program

Beta Risk Management Authority, Alamo, Calif.

However, a beta needs to be interpreted in light of the R-squared measurement that reflects the reliability of the

beta risk statistic.

The principle of risk compensation that higher

beta risk is associated with higher return has been established empirically.

Specifically, alpha risk is the likelihood that an auditor will conclude that an account is materially misstated (in error) when it is not and

beta risk is the likelihood that an auditor will conclude an account is not materially misstated when it is indeed materially misstated (in error).