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The beta concept becomes important in hedging properly when a. the futures contracts are being used to reduce the risk that the portfolio value will
The beta concept becomes important in hedging properly when
a. | the futures contracts are being used to reduce the risk that the portfolio value will follow the market down | |
b. | a portfolio of assets is being hedged using futures based on somewhat different underlying assets | |
c. | a foreign exchange exposure is being hedged | |
d. | futures contracts rather than forward contracts are being used, because of the daily settlement procedures required for the former type of contract |
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