Which of the following is true? Select the most suitable answer.

a.

An investor will hedge a portfolio with an index future when he believes the stocks in the portfolio will perform better than the market but is uncertain about the future performance of the market.

b.

None of the provided answers.

c.

Cross hedging occurs when the asset underlying the futures contract is the same as hedged assets.

d.

In a cross hedge, the investor can not hedge the underlying asset prices so it cant reduce the price risk associated with the underlying assets.

e.

An investor can remove all the risks from the prices of the assets easily by adopting a hedge.