A Portfolio of Treasury Bills Will Have a Beta Equal

question 270

True/False

A portfolio of Treasury bills will have a beta equal to minus one.

---

Definitions:

Forward Rate Market

Refers to a financial market that deals with contracts specifying the rate at which currencies, securities, or commodities will be exchanged at a future date.

Spot Rates

The current price at which a particular security, commodity, or currency can be bought or sold for immediate delivery.

Forward Rates

Interest rates or exchange rates fixed now for financial transactions that will occur at a future date.

Home Currency Approach

A method of assessing an international investment by converting all foreign currencies involved into the investor’s domestic or "home" currency.