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Which statement about hedging with stock index futures is true? Hedging with stock index futures A. allows you to sell your existing equity portfolio now
Which statement about hedging with stock index futures is true? Hedging with stock index futures
A. allows you to sell your existing equity portfolio now and buy it back in the future at a lower price.
B. works better for less diversified portfolios than for well diversified portfolios.
C. can effectively eliminate the market risk in your equity portfolio.
D. requires going long in stock index futures if the portfolio you want to hedge has a positive beta.
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