We will generally find that the beta of a diversified portfolio is more stable over time than the beta of a single security.

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The beta of a diversified portfolio is influenced by the betas of all the securities in the portfolio which tend to offset each other's fluctuations, thereby making the overall beta more stable over time. However, the beta of a single security can be affected by various factors such as changes in the company's business operations or market conditions, which can cause its beta to fluctuate significantly over time.

We Will Generally Find That the Beta of a Diversified