When two or more assets are being combined, the risk of the new portfolio is calculated by taking the weighted average of the betas of the assets

therein. The beta of a portfolio is:

${}_P={\displaystyle \underset{i=1}{\overset{n}{}}}{w}_i{}_i$

Where $w_i$ is the weight of asset $i$ in portfolio $p.$

True or False: The beta for a diversified portfolio is extremely volatile over time.

False

True