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Suppose you have invested 5 million dollars in an equally-weighted portfolio of 5 stocks. Compute number of stock index futures contract of that country you
Suppose you have invested 5 million dollars in an equally-weighted portfolio of 5 stocks. Compute number of stock index futures contract of that country you need to use in order to hedge your portfolio.
Monitor the hedge performance over time on a weekly basis (say, 4 weeks). Record the weekly profit and loss of the stock portfolio and the hedge in Excel. ( any stock that you can choose to me)
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