You Are Given the Following Information About a Portfolio You

question 34

Multiple Choice

You are given the following information about a portfolio you are to manage. For the long term, you are bullish, but you think the market may fall over the next month. $$\begin{array} { l c } \text { Portfolio Value } & \$ 1 \text { milion } \\\text { Portfolio's Beta } & 0.60 \\\text { Current S\&P500 Value } & 1400 \\\text { Anticipated S\&P500 Value } & 1200 \\\end{array}$$ How many contracts should you buy or sell to hedge your position? Allow fractions of contracts in your answer.

• A) sell 1.714
• B) buy 1.714
• C) sell 4.236
• D) buy 4.236
• E) sell 11.235

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Elected officials who serve as members of the Senate, the upper chamber of the legislature in many countries, including the United States, responsible for making laws.

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The lower chamber of the United States Congress, consisting of members who are elected based on population from each state to serve two-year terms.

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Legislative refers to the branch of government that has the authority to make, amend, and repeal laws.

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The branch of government responsible for enforcing laws and administering public policy.