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Assume I am holding a stock, and I believe it will beat the market, namely there is an abnormal excess rate of return, and then

Assume I am holding a stock, and I believe it will beat the market, namely there is an abnormal excess rate of return, and then I should use the index future contract to hedge against the systematic risk and keep the unsystematic risk instead of using future contract underlying on that particular stock to remove the total risk.

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