TY  - JOUR
AB  - It is now common for finance textbooks to discuss the concepts of the CAPM, diversification benefit, and systematic risk, as measured by beta. The purpose of this paper is to clarify aspects of these concepts and make the textbooks readers aware of them. In particular, this paper seeks to: (1) clarify the notion that “diversification reduces risk,” (2) provide geometric expositions and algebraic expressions of portfolio benefits in the context of both total risk and market risk, and (3) improve the interpretation of beta.
VL  - 16
IS  - 1
SN  - 0828-8666
DO  - 10.1108/eb018848
UR  - https://doi.org/10.1108/eb018848
AU  - Ardalan Kavous
PY  - 2000
Y1  - 2000/01/01
TI  - Interpretations of the CAPM, Diversification, and Beta: Clarifications
T2  - Humanomics
PB  - MCB UP Ltd
SP  - 35
EP  - 50
Y2  - 2024/05/13
ER  -