synthetic cash vs fully hedging an equity position position, creating, actually, something

AnalystForum

I can't believe that it's this late in the came and I am still have trouble with this. Can anyone please be kind enough to explain when you use the synthetic cash equation for the # of contracts Vp[(1+rf)^t]/(pf*mult) and when you actually use the beta equation and set Bt=0?

When you hedge a dollar portfolio, doesnt it return the risk free rate? if so, isn't this the same as creating synthetic cash? I think there is a short in my brain, and something aint clicking. Thanks.