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Business, 23.02.2021 04:00 jamesvazquez3135

It is July 16. A company has a portfolio of stocks worth $100 million. The beta of the portfolio is 1.2. The company would like to use the December futures contract on a stock index to change beta of the portfolio to 0.5 during the period July 16 to November 16. The index is currently 2,000, and each contract is on $250 times the index. What position should the company take? long 140 contracts short 140 contracts long 240 contracts short 240 contracts

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It is July 16. A company has a portfolio of stocks worth $100 million. The beta of the portfolio is...
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