Question
Company A is holding a diversified Stock Portfolio worth $360 million with a beta of 0.8. This stock portfolio mimics the ASX Index Futures (ASX
Company A is holding a diversified Stock Portfolio worth $360 million with a beta of 0.8. This stock portfolio mimics the ASX Index Futures (ASX IF) and currently the index is trading at 1,440 points. This Index Futures contract has $250 multiplier. What trade is necessary to increase beta to 1.8? A. Long 1,000 ASX IF contracts B. Short 1,000 ASX IF contracts C. Long 800 ASX IF contracts D. Short 800 ASX IF contracts
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Entrepreneurial Finance
Authors: J . chris leach, Ronald w. melicher
4th edition
538478152, 978-0538478151
