You Currently Own a Stock Portfolio That Has a Beta

question 22

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

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Definitions:

Technical Skills Certificate Program

A formal recognition of an individual's competence and proficiency in specific technical or vocational skills, usually acquired through a short-term educational or training process.

Cost Effectiveness

A measure of how effectively resources (money, time, effort) are used to achieve a desired outcome or goal.

Technical Skills Certificate Program

A structured education program focused on teaching specific technical skills, often leading to certification.

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