Multiple Choice
Find the optimal stock index futures hedge ratio if the portfolio is worth $1,200,000,the beta is 1.15 and the S&P 500 futures price is 450.70 with a multiplier of 250.
A) 10.65
B) 12.25
C) 6123.80
D) 5325.05
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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