You Hold a Stock Portfolio Worth $15 Million with a Beta

question 48

Multiple Choice

You hold a stock portfolio worth $15 million with a beta of 1.05.You would like to lower the beta to 0.90 using S&P 500 futures,which have a price of 460.20 and a multiplier of 250.What transaction should you do? Round off to the nearest whole contract.

• A)sell 130 contracts
• B)sell 9,778 contracts
• C)sell 20 contracts
• D)buy 50,000 contracts
• E)sell 50,000 contracts

---

Definitions:

Citizens

Members of a political community, typically having both rights and duties associated with membership in a given nation-state.

Pan-Indianism

A movement aiming to promote unity among different Native American tribes beyond individual and tribal affiliations, often to address common issues facing Native peoples.

Tanya Golash-Boza

is an academic and author known for her work on immigration, race, and the social impacts of U.S. public policy.

Jamaican Deportees

Individuals deported back to Jamaica, often due to violating visa conditions or for legal reasons, who face reintegration challenges.