Consider a portfolio manager with a 20500000 equity


Consider a portfolio manager with a $20,500,000 equity portfolio under management. The manager wishes to hedge against a decline in share values using stock index futures. Currently a stock index future is priced at 2,550 and has a multiplier of 250. The portfolio beta is 1.25. How many contracts do you need to sell?

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Financial Management: Consider a portfolio manager with a 20500000 equity
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