25. Hedging (S27-7) You own a $1 million portfolio of aerospace stocks with a beta of 1.2....
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25. Hedging (S27-7) You own a $1 million portfolio of aerospace stocks with a beta of 1.2. You are very enthusiastic about aerospace but uncertain about the prospects for the overall stock market. Explain how you could hedge out your market exposure by selling the market short.
How much would you sell? How in practice would you go about “selling the market”?
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Related Book For 
Principles Of Corporate Finance
ISBN: 9781264080946
14th Edition
Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans
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