PT - JOURNAL ARTICLE AU - Jackson Wang AU - Jose Menchero ED - Goyal, Gauri TI - Practical Applications of The Drivers of Predicted Beta AID - 10.3905/pa.2015.2.4.103 DP - 2015 Apr 30 TA - Practical Applications PG - 1--4 VI - 2 IP - 4 4099 - https://pm-research.com/content/2/4/1.9.short 4100 - https://pm-research.com/content/2/4/1.9.full AB - The Drivers of Predicted Beta Jackson Wang Jose Menchero Do portfolio managers know what’s really driving beta? While institutional portfolio managers understand the concept of beta from a practical standpoint, little work has been done on what actually drives beta in a stock portfolio, says Jackson Wang, Executive Director at MSCI in San Francisco.In The Drivers of Predicted Beta , published in the Fall 2014 issue of The Journal of Portfolio Management , Wang and co-author Jose Menchero, until recently Managing Director at MSCI, explain their theory of factor beta.In this report, Wang describes their approach and how it can be used to study cross-sectional variations in beta and to identify which factors are most responsible for the variations.