A company has a $36 million portfolio with a beta of 1.2. The futures price for a

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A company has a $36 million portfolio with a beta of 1.2. The futures price for a contract on an index is 869. Futures contracts on
$250 times the index can be traded. How many futures have to be bought to increase beta to 2.6?

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Fundamentals of Investment Management

ISBN: 978-0078034626

10th edition

Authors: Geoffrey Hirt, Stanley Block

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Posted Date: Apr 20, 2024 10:56 AM

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A company has a $36 million portfolio with a beta of 1.2. The futures price for a

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To increase the beta of the portfolio we need to calculate the additional beta exposure required and ... View the full answer

Fundamentals of Investment Management

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