Jimmy, a fund manager with BMT Money Wiz, was managing a portfolio of Singapore stocks that...

 

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Jimmy, a fund manager with BMT Money Wiz, was managing a portfolio of Singapore stocks that tracks closely to the Straits Times Index (STI). His portfolio was $10,000,000 and his portfolio beta is 1.07. In January 2020, he was troubled about a market decline after reading news on the Wuhan virus. The March STI Futures contract was priced at 3000 index points. Based on a multiplier of $10 per point, what was the best thing he did to address the potential fall in the stock market? Jimmy, a fund manager with BMT Money Wiz, was managing a portfolio of Singapore stocks that tracks closely to the Straits Times Index (STI). His portfolio was $10,000,000 and his portfolio beta is 1.07. In January 2020, he was troubled about a market decline after reading news on the Wuhan virus. The March STI Futures contract was priced at 3000 index points. Based on a multiplier of $10 per point, what was the best thing he did to address the potential fall in the stock market?

Answer rating: 100% (QA)

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