1 point Multiple Answer: Which of the following are False? If the asset being hedged is not exactly the same as the asset underlying the futures contract, then there is basis risk One reason to short stock index futures is to try to lock in the benefits of successful stock picking against market risk The betas used in hedging are based on regressions which examine historical relationships that are certain to hold in the future Hedging is designed to reduce risk not to maximize return. If the expected return on the S\&P 500 is 8% and the risk-free rate is 2%, the expected return on a stock portiolio with a beta of 15 vertiat thing 1 point Multiple Answer: Which of the following are False? If the asset being hedged is not exactly the same as the asset underlying the futures contract, then there is basis risk One reason to short stock index futures is to try to lock in the benefits of successful stock picking against market risk The betas used in hedging are based on regressions which examine historical relationships that are certain to hold in the future Hedging is designed to reduce risk not to maximize return. If the expected return on the S\&P 500 is 8% and the risk-free rate is 2%, the expected return on a stock portiolio with a beta of 15 vertiat thing