zero-beta portfolio

zero-beta portfolio definition - finance
A portfolio created to mimic a risk-free asset. Thus it has a beta (risk) of zero. The Standard & PoorÂ’s 500 Stock Index has a beta coefficient of 1. A beta above 1 is more volatile than the market while a beta below 1 is less volatile.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.