Question: Are the following statements true or false? Why? a. All else equal, the futures price on a stock index with a high dividend yield should
a. All else equal, the futures price on a stock index with a high dividend yield should be higher than the futures price on an index with a low dividend yield.
b. All else equal, the futures price on a high-beta stock should be higher than the futures price on a low-beta stock.
c. The beta of a short position in the S&P 500 futures contract is negative.
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a False For any given level of the stock index the futures price will be lower when the ... View full answer
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