You invest 1 million USD in the SP500 Index ETF. To hedge your position you go ___ long / short ___ e-mini SP500 Index futures at current price 2,000, and contract cost of $50. Assuming hedge ratio of 1, is this a perfect hedge?

long, 10, yes

short, 8, no

long, 12, yes

short, 10, yes

long, 12, yes

2

The best measure of a company's stock-specific risk, relative to the stock market overall is, its

Group of answer choices

CAPM

Price / Earnings Multiple

Alpha

Beta