The Horizons Bear Plus Fund Seeks Daily Expected Returns That

question 36

Multiple Choice

The Horizons Bear Plus Fund seeks daily expected returns that are two times (200%) the inverse (opposite) of the performance of the S&P 500 Index.If k_F = 5% and E(k_M) =10%,what is the Beta coefficient for the Bear Plus Fund?

• A) -0.5
• B) -2.0
• C) -4.0
• D) -5.0
• E) +1.0

---

Definitions:

Profitability

A measure of the efficiency and financial success of a company, typically evaluated through ratios such as net profit margin or return on investment.

Required Reserves

The portion of deposits that banks are required to keep on hand and cannot lend out, typically mandated by a central bank.

Total Assets

The sum of all assets owned by an entity, including cash, investments, property, and other valuables, used to assess financial health.

Excess Reserves

The capital reserves held by banks over and above the minimum required by regulators, available for lending or investing.