still cant comprehend using futures to lower beta of portfolio…
I can do the number and get the answer, I just dont get what is going on.
When the look at the "“effective beta” after the fact, they compared the return of the portfolio to the return of the market
So if market returned 10% and our portfolio returned 0, they say 0/10, effective beta is 0
But should not a portfolio with a beta of 0 still return the risk free rate ??