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Simone Investor manages an equity portfolio with a market value of$5,500,000. The portfolio beta is 2.0.Simone finds this somewhat overly aggressive for the client's risk
Simone Investor manages an equity portfolio with a market value of$5,500,000. The portfolio beta is 2.0.Simone finds this somewhat overly aggressive for the client's risk profile.
The S&P500 futures contract is defined as $250 times index and is currently trading at 1110.
To reduce the portfolio beta to 0.6 Simone should (Buy? / Sell?):___?___(#of contracts)S&P contracts
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