If you had invested $1M 10 years ago in the segments you have selected, what would be

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If you had invested $1M 10 years ago in the segments you have selected, what would be your return at the end of 2021 (1/2012 - 12/2021)?

a. You would invest in EQUITY only.

b. Use derivative to hedge your investment

c. Can you develop an investment strategy using derivatives such that you could add at least 20% to the overall return?

333,333 in Energy sector. (+20.34% increase from 1/2012-12/2021)

333,333 in Health Care sector. (+242.06% increase from 1/2012-12/2021)

333,333 in Information Technology sector. (+400.37% increase from 1/2012-12/2021)

Related Book For answer-question

Corporate Finance

ISBN: 978-0077861759

10th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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Posted Date: Jan 29, 2023 11:14 PM

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If you had invested $1M 10 years ago in the segments you have selected, what would be

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To calculate the returns on the investments made in each of the sectors we first need to determine the value of the investment at the end of 2021 We a... View the full answer

Corporate Finance

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