You Currently Own a Stock Portfolio That Has a Beta

question 65

Multiple Choice

You currently own a stock portfolio that has a beta of 1.2. If you fully hedge your stock portfolio you will effectively change the portfolio's beta to which one of the following?

• A)0
• B)1
• C)1 / 1.2
• D)1.2
• E)1.22

---

Definitions:

Dollar Sales

The total monetary value of sales transactions over a specified period, often used to measure business performance.

Break-Even

The stage where total income matches total expenses, leading to no profit or loss.

Monthly

Pertaining to or occurring once every month.

Unit Sales

The total number of individual items or products sold by a company in a specific period.