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:

Proslavery Constitution

A constitution or constitutional amendments that legitimize or promote the practice of slavery, often used to refer to historical documents in the United States prior to the Civil War.

Kansas

A U.S. state located in the Midwestern region, known for its contributions to agricultural outputs, such as wheat and corn.

Free Labor Ideology

The belief that labor should be free to choose where and for whom they work, contrasting with the system of slavery.

Landowning Farmers

Individuals or families that own agricultural land and engage in farming, often enjoying certain socioeconomic benefits.