What is the portfolio's beta?

Do investors still get compensated for beta?

• In recent years, do investors realize higher returns for high beta portfolios? Please show some studies.

• Answer:

  By the very definition of beta: Beta is used in the capital asset pricing model (CAPM), that calculates the expected return of an asset based on its beta and expected market returns. Are you also questioning if the CAPM model is still valid? Again, by definition, beta is a measure of volatility, or systematic risk. Are you questioning also if a higher volatility will have a higher return? Higher risk assets always have a higher yield or return. That is simply an axiom of finance. Like the higher risk Greek bonds recently demanded a higher yield, and junk bonds have a higher yield yet. If you take a class in Economics 101, you will see that a chart of risk vs return produces a straight line at a 45 degree angle. Futures have higher risk/reward than stocks, then bonds, then CD's have the lowest risk/reward. Better you would give examples/details/reasons of why you think investors don't get compensated for higher risk. Then we could answer a more direct question about specifics rather than trying to prove a negative that doesn't exist and explaining the whole industry and trying to find studies that aren't necessary.