You own an equally weighted portfolio of 50 different stocks worth about $5,000,000. The stocks are from

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You own an equally weighted portfolio of 50 different stocks worth about $5,000,000. The stocks are from several different industries, and the portfolio is reasonably well diversified.Which do you think would provide you with the best overall hedge: a single position in an index future or 50 different positions in futures contracts on the individual stocks? What are the most important factors to consider in making this decision?

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Investment Analysis And Portfolio Management

ISBN: 9780176500696

1st Canadian Edition

Authors: Frank K. Reilly, Peggy L. Hedges, Philip Chang, Keith C. Brown, Hedges Reilly Brown

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