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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