In Order to Effectively Hedge a Stock Portfolio, the Portfolio

question 48

Multiple Choice

In order to effectively hedge a stock portfolio, the portfolio manager must know the total dollar value of the portfolio, the current index futures price, and:

• A)the number of contracts available in the market.
• B)the portfolio P/E ratio.
• C)the relative volatility of the portfolio to the market.
• D)More than one of the above

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Definitions:

Efferent Vessels

Blood vessels that carry blood away from an organ or structure in the body, typically referring to the lymphatic vessels that transport lymph away from tissues.

Thoracic Duct

The largest lymphatic vessel in the body, which drains lymph from the lower half of the body and the left upper part into the bloodstream.

Lymphatic Duct

A large vessel in the lymphatic system that drains lymph from the lymphatic vessels into the venous system.

Vena Cavae

The two major veins (superior vena cava and inferior vena cava) that carry deoxygenated blood from the body back to the heart.