Assume that your portfolio consists of 10 stocks as above, which carry a value of RM10 million.

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Assume that your portfolio consists of 10 stocks as above, which carry a value of RM10 million. You have invested RM 1 million in each stock. Given recent uncertainties, you intend to reduce your portfolio beta to 1.0. KLCI now is at 1600 points.

How the objective can be achieved using SIF contracts.

Related Book For answer-question

Corporate Finance A Focused Approach

ISBN: 978-1305637108

6th edition

Authors: Michael C. Ehrhardt, Eugene F. Brigham

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Posted Date: Jun 20, 2023 01:16 AM

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Assume that your portfolio consists of 10 stocks as above, which carry a value of RM10 million.

Question:

Stock Beta Mayban k 1.4 PBBan k 1.5 Pche m 1.6 IHH Tenaga Cimb 1.7 1.8 1.9 Pmeta 1 2.0 Maxis Axiata Digi 2.2 2.3 2.1 Stock Beta Mayban k 1.4 PBBan k 1.5 Pche m 1.6 IHH Tenaga Cimb 1.7 1.8 1.9 Pmeta 1 2.0 Maxis Axiata Digi 2.2 2.3 2.1

Expert Answer:

To achieve a portfolio beta of 10 using Single Index Futures SIF contracts you need to calculate the ... View the full answer

Corporate Finance A Focused Approach

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