If a Stock Portfolio Replicates the Returns on a Stock

question 92

Multiple Choice

If a stock portfolio replicates the returns on a stock market index, the beta of the portfolio will be

• A)less than 1.
• B)greater than 1.
• C)equal to 0.
• D)equal to 1.
• E)negative.

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Definitions:

Harriet Tubman

An African American abolitionist, humanitarian, and during the American Civil War, a Union spy, best known for her role in helping enslaved people escape through the Underground Railroad.

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The act of unlawfully abducting and holding a person against their will, often for ransom or other demands.

Black Preacher

A clergy member, typically in the African American church community, known for their role in spiritual leadership, guidance, and social activism.