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Which of thefollowing scenarios would be when a portfolio manager might use Delta hedging? A. When the market remains fairly stable and the volatility is

Which of thefollowing scenarios would be when a portfolio manager might use Delta hedging?

A.

When the market remains fairly stable and the volatility is low

B.

When the portfolio value is less than $50,000

C.

When the portfolio is not well diversified and only has 2 or 3 stocks

D.

When there is a large, well diversified portfolio and there is concern that there may be sharp drop in the overall market in the near future

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