You Own an Equity Portfolio That Has a Value of $10,000

question 19

Multiple Choice

You own an equity portfolio that has a value of $10,000 and a beta of 1.2.The futures price per contract is currently $1,000.How many futures contracts do you need to sell to bring your equity portfolio's beta to a value of 1?

• A)0.5
• B)1.0
• C)1.5
• D)2.0

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Definitions:

Wall Painting

An artwork executed directly on a wall, such as a fresco or mural, often displaying a wide array of subjects and serving various cultural, decorative, or social functions.

Monolithic Pillars

Single, large pieces of stone used in construction, often seen in ancient megalithic structures.

Axis

In architecture and art, a straight line that often serves as a fundamental organizing principle in the design and layout of buildings and landscapes.

Cosmic Mountain

A mythological motif found in various cultures, symbolizing the center of the world and a connection between the earth and the heavens.