tag:blogger.com,1999:blog-2568941354104807757.post1474916603463276432..comments2023-10-05T09:07:24.225-04:00Comments on Investment Performance Guy: Beta ... what is 1.0?Dave Spauldinghttp://www.blogger.com/profile/01777929408680234896noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2568941354104807757.post-12283464999366785772011-08-29T13:29:24.012-04:002011-08-29T13:29:24.012-04:00Pat, excellent! I look forward to reading this in ...Pat, excellent! I look forward to reading this in detail.Dave Spauldinghttps://www.blogger.com/profile/01777929408680234896noreply@blogger.comtag:blogger.com,1999:blog-2568941354104807757.post-5924007310229501402011-08-29T12:12:33.193-04:002011-08-29T12:12:33.193-04:00This post inspired me to wonder about the properti...This post inspired me to wonder about the properties of portfolios that have beta = 1. The result is: "The effect of beta equal 1" at http://www.portfolioprobe.com/2011/08/29/the-effect-of-beta-equal-1/Pat Burnshttp://www.portfolioprobe.com/blog/noreply@blogger.comtag:blogger.com,1999:blog-2568941354104807757.post-13633245820252131392011-08-26T11:53:39.347-04:002011-08-26T11:53:39.347-04:00Steve, I LOVE it when we agree:-) Thanks!!!Steve, I LOVE it when we agree:-) Thanks!!!Dave Spauldinghttps://www.blogger.com/profile/01777929408680234896noreply@blogger.comtag:blogger.com,1999:blog-2568941354104807757.post-48036453890122219232011-08-26T10:50:14.768-04:002011-08-26T10:50:14.768-04:00Completely agree. Your perspective on this is irre...Completely agree. Your perspective on this is irrefutable, incontestable, undeniable, indisputable, incontrovertible... and most importantly, it's correct and consistent with financial theory. <br /><br />CAPM is really based on an investor's TOTAL portfolio, which is fully diversified across the globe and inclusive of all assets, both financial and tangible. You can apply CAPM to a single asset class, where "the market" is represented by the manager's stated investment mandate. So, the ONLY way to apply this principle correctly is to use the manager's market benchmark, as you advise. Any other "interpretation" is simply incorrect.Stephen Campisi, CFAnoreply@blogger.com