If a Stock Portfolio Replicates the Returns on a Stock

question 44

Multiple Choice

If a stock portfolio replicates the returns on a stock market index,the beta of the portfolio will be

• A)less than 1.
• B)greater than 1.
• C)equal to 0.
• D)equal to 1.

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Definitions:

Poisonous Snake

A snake species that has venom which is harmful or fatal to humans and other animals upon biting.

Confinement

The state of being restricted or limited within certain boundaries.

Serious Injury

An injury that poses a significant threat to an individual's health or life, often requiring medical intervention.

Author of Misfortune

A term denoting the individual or entity primarily responsible for a harmful event or situation.