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Business, 13.04.2021 01:50 eboneecook8704

A manager is holding a $1.2 million stock portfolio with a beta of 1.01. She would like to hedge the risk of the portfolio using the S&P 500 stock index futures contract. How many dollars’ worth of the index should she sell in the futures market to minimize the volatility of her position?

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A manager is holding a $1.2 million stock portfolio with a beta of 1.01. She would like to hedge the...

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