You own an equally weighted portfolio of 50 different stocks worth about $5,000,000 The stocks are from several different industries, and the portfolio is reasonably well diversified Which do you think would provide you with the best overall hedge a single position in an index futures or 50 differe...

It is most likely that a single position in an index futures market would be the best hedge There ar ...

You own an equally weighted portfolio of 50 different stocks worth about $5,000,000. The stocks are from

Question:

You own an equally weighted of 50 different worth about $5,000,000.
The are from several different industries, and the is reasonably well diversified.
Which do you think would provide you with the best overall hedge: a single position in an index futures or 50 different positions in futures contracts on the individual What are the most important factors to consider in making this decision?

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...