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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Definitions:

Rh Factor

An antigen found on the surface of red blood cells that can lead to immune reactions during blood transfusion or pregnancy if the donor and recipient or mother and fetus have incompatible Rh types.

ABO Blood Groups

The ABO blood group system is one of the most important blood-type systems in human blood transfusion, comprising four main blood groups: A, B, AB, and O.

Passive Immunity

Immunity acquired by the transfer of antibodies or activated T-cells from another individual, providing temporary protection against disease.

Active Immunity

Immunity that results from the production of antibodies by the immune system in response to the presence of an antigen.