Multiple Choice
A company has a $36 million portfolio with a beta of 1.2.The futures price for a contract on an index is 900.Futures contracts on $250 times the index can be traded.What trade is necessary to increase beta to 1.8?
A) Long 192 contracts
B) Short 192 contracts
C) Long 96 contracts
D) Short 96 contracts
Correct Answer:
Verified
Correct Answer:
Verified
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