Static Testing: A form of software testing where the software isn't actually used it checks mainly for the sanity of the code, algorithm, or document. It is used by the developer who wrote the code. 89. Stability Testing: Testing technique which attempts to determine if an application will crash.
Before we start, you'll need to understand a few key terms and concepts, namely alpha, beta, systematic risk and idiosyncratic risk. Beta - The return generated from a portfolio that can be attributed to overall market returns. Exposure to beta is equivalent to exposure to systematic risk. The alpha is the portion of a portfolio's return that cannot be attributed to market returns, and is thus independent from market returns.
The beta of the risk-free asset is zero, and the weight of the risk-free asset is one minus the weight of the share, so the b of the portfolio is: â¢ Ãp = x W(1.18) + (1 â x W)(0) = 1.18 x W â¢ So, to find the beta of the portfolio for any weight of the share, we simply multiply the weight of the share times its beta.