Investments
Investments
11th Edition
ISBN: 9781259277177
Author: Zvi Bodie Professor, Alex Kane, Alan J. Marcus Professor
Publisher: McGraw-Hill Education
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Chapter 23, Problem 8PS
Summary Introduction

To calculate: Number of index should be sold in the future market to minimize the risk.

Introduction: A manager is holding stock worth of $1 million having beta value 1.25 and she wants to sell some dollar index in future market to hedge the risk.

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