Question
Assume the best hedge of an asset in your portfolio is $ 2 . 5 m , while the current investment in that asset is
Assume the best hedge of an asset in your portfolio is $m while the current investment in that asset is $m Assume you have short selling restrictions and you want to minimise the volatility of your portfolio by changing your investment only on that asset. Then, you would decrease your position in that asset by
$m
$m
$
$m
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Fundamentals of corporate finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
2nd Edition
978-0470933268, 470933267, 470876441, 978-0470876442
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