Assume That You Manage an Equity Portfolio

question 33

Multiple Choice

Assume that you manage an equity portfolio. The portfolio beta is 1.15. You anticipate a decline in equity values and wish to hedge $500 million of the portfolio. Calculate the number of contracts you would need to hedge your position and indicate whether you would go short or long. Assume that the price of the S&P 500 futures contract is 1105 and the multiplier is 250.

• A) 2500 contracts short
• B) 1810 contracts short
• C) 1810 contracts long
• D) 2081 contracts short
• E) 2081 contracts long

Understand the roles and functions of components in air brake systems, such as air compressors, slack adjusters, and brake chambers.

Identify the cooling mechanisms for air compressors in truck air brake systems.

Recognize the effects of vehicle aerodynamics on braking efficiency.

Comprehend the configuration and necessity of supply tanks in tractor-trailer rigs.

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Definitions:

Spit

A small point or low ridge of sand or gravel projecting from the shore into a body of water.

Wave-cut Platform

A flat, often wide area at the base of a cliff created by the erosion of waves at the shore.

Estuaries

Coastal bodies of water where fresh water from rivers meets and mixes with salt water from the ocean.

Irregular Coast

A coastline that has a complex shape, often characterized by numerous bays, peninsulas, and inlets.