a How would your hedging strategy in the previous problem change if, instead of holding an indexed portfolio, you hold a portfolio of only one stock with a beta of 6 b How many contracts would you now choose to sell Would your hedged position be riskless c What would be the beta of the hedged position

Question: a. How would your hedging strategy in the previous problem change if, instead of holding an indexed portfolio, you hold a portfolio of only one

a. How would your hedging strategy in the previous problem change if, instead of holding an indexed you hold a of only one stock with a beta of .6?
b. How many contracts would you now choose to sell? Would your hedged position be riskless?
c. What would be the beta of the hedged position?

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