A Fully Hedged Stock Portfolio Will Have a Beta Equal

question 29

Multiple Choice

A fully hedged stock portfolio will have a beta equal to which one of the following?

• A)an average asset
• B)U.S. Treasury bill
• C)S&P 500
• D)the beta of the stock portfolio exclusive of the hedge
• E)one-half of the beta of the stock portfolio exclusive of the hedge

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