True or false: The calculation of the portfolio beta is similar to the calculation of the portfolio weights.True false question.TrueFalse

False. The calculation of the portfolio beta and the calculation of the portfolio weights are two different things.

The portfolio beta is a measure of the portfolio's sensitivity to market movements and is calculated by taking the weighted average of the individual asset betas, where the weights are the proportions of the total portfolio value that each asset represents.

On the other hand, the calculation of the portfolio weights involves determining the proportion of the total portfolio value that each asset represents. This is typically done by dividing the value of each asset by the total portfolio value.

So, while both calculations involve the use of weights, the weights are used in different ways and for different purposes in each calculation.