In this video, we break down how to calculate the new portfolio beta using the Capital Asset Pricing Model (CAPM). We walk through a real-world example where a diversified portfolio undergoes changes, and two stocks are sold. By applying a simple formula and understanding the weights of the assets, you’ll see how to compute the new beta for the portfolio. The key takeaway is that even small changes can have a big impact on your portfolio's risk profile, and using the right approach makes the process much easier and faster.