Beta risk is market risk – plain and simple. I distinguish between equity beta, credit beta, etc., and it goes without saying that for beta risk to be quantifiable, the underlying asset(s) must be listed. Returns from taking beta risk are primarily a function of how you choose to allocate your capital across different asset classes and countries, but the cost factor is also significant – particularly in a low return environment. As most active investors underperform passive investors once costs are taken into consideration, the most cost efficient way of getting exposure to beta risk is
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