Assume the initial margin for S&P 500 Index futures is $30,938 per contact. A fund manager buys 100 contracts at an initial index value of 2,875. After 6 months, the index has risen to 3,000. The contract multiplier is $250. Assume the manager finances her margin deposit at one-year Libor, which is 3.375%. The fund managers total return is closest to:

A. $3,125,001

B. $2,977, 782

C. $3,035,721

A portfolio with a stated objective of minimizing volatility risk for a given expected return is most likely to exhibit

1. Zero skewness
2. Positive skewness of returns
3. Negative skewness of returns