Question
A company has a $50 million portfolio with a beta of 1.5. The futures price for a contract on an index is 1500. Futures contracts
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A company has a $50 million portfolio with a beta of 1.5. The futures price for a contract on an index is 1500. Futures contracts on $250 times the index can be traded. What trade is necessary to decrease beta to 0.9?
LONG 80 contracts
LONG 40 contracts
SHORT 80 contracts
SHORT 40 contracts
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Finance And The Behavioral Prospect
Authors: James Ming Chen
1st Edition
331981351X, 978-3319813516
