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A portfolio manager has a $250 million dollar stock portfolio with a beta of 1.25. He decides he wants to target a beta of 1.05
- A portfolio manager has a $250 million dollar stock portfolio with a beta of 1.25. He decides he wants to target a beta of 1.05 using E-mini S&P 500 index futures. Assuming the S&P 500 index is trading at 3,000 and each futures contract represents $50 times the index, what action should he take?
- Sell 333 contracts
- Buy 380 Contracts
- Sell 400 Contracts
- Buy 600 Contracts
- Buy 810 Contracts
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Entrepreneurial Finance
Authors: Steven Rogers
4th Edition
1260461440, 978-1260461442
