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A German fund manager has an aggressive equity portfolio with a beta of 1.2 relative to the DAX Index. The fund manager believes the German

image text in transcribed A German fund manager has an aggressive equity portfolio with a beta of 1.2 relative to the DAX Index. The fund manager believes the German equity market will perform strongly over the next year and wishes to increase the portfolio beta to 1.40 . The fund manager is most likely to Purchase additional shares of listed German companies Pay the DAX index return and receive a floating interest rate in an equity swap. Purchase DAX index futures

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