lunarfollies

maisatomai wrote:
thanks a lot.
Anyone remember the name of a stock having different beta at different market condition (e.g. 0.5 in down market and 1.5 in up market)?
Beta is going to be symetrical because its the slope coefficient that minmizes the squared errors, the example above would have a beta of 1.0 because the errors have to be symmetrical.
Regarding the portfolio with zero risk, you can do it with options to grow at RF- but you’d be taking on counterparty risk. Best bet is 100% treasuries as someone said.
my 2 cents (to the best of my knowledge)