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Sep
27
awarded  Popular Question
Mar
10
comment CAPM - Beta of zero and its implications on diversification
I'll accept it, because it's a good explanation of how portfolio risk works.
Mar
10
awarded  Scholar
Mar
10
accepted CAPM - Beta of zero and its implications on diversification
Mar
10
revised CAPM - Beta of zero and its implications on diversification
Getting rid of my edits. The answer is a good answer to some question.
Mar
10
awarded  Editor
Mar
10
revised CAPM - Beta of zero and its implications on diversification
Trying to rephrase my question
Feb
28
awarded  Supporter
Feb
26
awarded  Student
Feb
26
comment CAPM - Beta of zero and its implications on diversification
@chrisaycock I agree with you. A reasonable answer to my question might be that the model comes with the caveat $| \beta | > 0$, but Luenberger doesn't say this! He addresses it in a hand-wavy way that bothers me. It's a theoretical question, but I'm hoping that the theory has a reasonable answer to my question.
Feb
26
asked CAPM - Beta of zero and its implications on diversification