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:

Altruism

A special form of helping behavior, sometimes costly, that shows concern for fellow human beings and is performed without expectation of personal gain.

Helping Behaviour

Acts that intentionally benefit someone else.

Expensive Donations

Large or costly contributions made to support a cause, organization, or individual.

Altruistic Behaviour

Actions taken to benefit others without expecting anything in return, often at a cost to oneself.