Suppose that one year ago, you invested in a stock market portfolio, which is currently worth 62,000. You are convinced the portfolio is well-diversified and fitted to your profile as an investor, and the beta of your portfolio is 0.9. You are planning to hold this portfolio for at least another three years.

c) Evaluate the outcomes of your hedging strategy if FTSE100 in two years time is 1842. Comment on your results