What Are Needed to Find the Number of Stock Index

question 109

Multiple Choice

What are needed to find the number of stock index futures for cross-hedging a stock portfolio?
I. Standard deviation of the stock portfolio
II. Beta of the stock portfolio
III. Value of the index futures contract
IV. Value of the stock portfolio

• A) I and III
• B) II and IV
• C) II, III and IV
• D) I, II and III
• E) I, II, III and IV

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Definitions:

Square Feet

A measurement of area used primarily in the United States, equivalent to the area of a square with sides of one foot.

Rental Expense

An expense incurred from leasing property or equipment for use in business operations.

Square Feet

A unit of area measurement equal to a square that is one foot on each side, used primarily in the United States.

Operating Department

A unit or division within a company that is directly involved in conducting core business operations, such as production or sales.