An investment firm has a portfolio worth $14 million with a beta of 1.4. Currently, the futures price for a contract on an index is 1280. Futures contracts on $250 times the index can be traded. What should the firm do to reduce beta of its portfolio to 0.8?

(Round your answer to nearest number)

Answer rating: 100% (QA)

To reduce the beta of the portfolio from 14 to 08 the investment firm can use index futures to adjus... View the full answer