What is the portfolio's beta?

Why does a high beta stock or portfolios do not produce higher return?

• Answer:

  There are many other factors involved in achieving high returns other than Beta. These include - Technical Analysis - Other fundamental analysis variables - The condition of the broad market (indices, individual blue chip or market moving stocks) To go a step further, if you consider the nature of markets it would be clear that there isn't any one, simple thing that determines if you will earn high returns in any financial instrument. This is because as soon as it is known that any given variable could mean the stock price will move up what you see is the market almost immediately pricing this variable into the stock price. There is a huge argument over what is called the efficient market hypothesis and what economists like Schiller refer to as irrational market behavior.