A Portfolio Manager Wants to Hedge a Stock Portfolio with a Value

question 26

Multiple Choice

A portfolio manager wants to hedge a stock portfolio with a value of $750 million and a beta of 1.25 with S&P Canada 60 index futures. The quoted price of a six-month futures contract is 1,437.25, and the contract multiplier is $200. How many futures contracts are needed for the hedge?

• A) 2,431
• B) 3,261
• C) 2,527
• D) 2,609
• E) 2,496

Understand the dynamics and satisfaction levels in abusive relationships.

Recognize the existence and implications of sexual double standards between genders.

Explore the factors influencing commitment and jealousy in relationships.

Distinguish between communal and exchange relationships.

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Definitions:

Dual Federalism

A concept of federalism in which federal and state governments have clearly defined, separate spheres of authority and responsibility.

Private Property

The legal right to own, use, and dispose of physical items or land, exclusive of others, protected by law.

Enacting Laws

Enacting laws refers to the process by which legislative bodies create new statutes or legal standards.

Federalism

Federalism is a system of government in which power is divided between a central authority and constituent political units, such as states or provinces.