Do treasury bills have a Beta of 0?

Question

Do treasury bills have a Beta of 0?

Answer 1

Beta is a measure of volatility against another security or index.  The most commonly measured beta is that of a stock compared to the S&P500.  The baseline is 1.  So a security with a beta of 1 compared to something is just as volatile as the market you're measuring against.  Less than 1 means less volatility, more than 1 means more volatility.

So first you have to define what you're comparing against.  But in the end, t-bills don't have a beta of 0, because they do fluctuate in price on the markets.  Look at the short-term bonds today and you'll see a pretty good movement in the prices of the t-bills.

Short answer: No

Answer 2

http://www.investopedia.com/terms/z/zero...

Answer 3

Not necessarily. A beta of zero means a risk-free asset and in real life there is no asset  that is truly risk-free. All assets suffer from risk to some degree and the short-term T-bills are as close as we can get to a risk-free security. So, they would have very low betas, if not exactly zero. Longer term T-bonds suffer from inflation risk and maturity risk, however, and they would have higher betas.

Answer 4

Beta is a measure of volatility against the market, usually the S&P500. And since T bill volatility is not related to that index, beta is not applicable to them. . However you can say that in a portofolio their effect would be equivanent to zero beta.

Answer 5

what is a beta of 0 , they paid fix % return, which is very low, poorest investment vehicle, most any stock will out preform T-bill or bonds