Suppose a cotton farmer sells November 2021 cotton futures contracts today. The farmer is most likely:

Select one:

a. Hedging against price fluctuations for his next years cotton crop

b. Overconfident

c. Unwise for deploying futures contracts instead of options

d. Going to make a significant profit from this purely speculative trade

Suppose a diversified portfolio has a Beta of 1.2. You can conclude:

Select one:

a. The portfolio is likely to generate a higher return than the market as a whole

b. The portfolio is likely to experience more volatility than the market as a whole

c. Both of these two statements are true

d. Neither of these two statements is true