Portfolio Beta Score

Portfolio Beta Score - The beta score is a term used to describe the calculation of the volatility of a given portfolio. The portfolio is the collection of securities that an individual manager has put together in the hopes of making a good profit (return). A skilled manager will select them in such a way as to balance the potential for growth against the risk of drop in value. Selecting a wide variety allow the manager to offer a degree of comfort to his clients. The score is base on the relative overall performance of the specific portfolio relative to the overall performance of the market as a whole. A score of one indicates the portfolio matched the market. A score of two indicates that the portfolio will advance or decline differently from the market and by how much.