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A hedge portfolio consists of a dividendpaying stock and a forward contract to eliminate the uncertainty of the selling price of the stock. The forward

A hedge portfolio consists of a dividend‐paying stock and a forward contract to eliminate the uncertainty of the selling price of the stock. The forward price should be such that it forces the hedge portfolio to earn a return equal to: Group of answer choices The risk‐free rate plus the dividend yield. The risk‐free rate. The risk‐free rate minus the dividend yield.

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