Question: Information on your Portfolio Expected dividend yield 0% Index Linked Portfolio Value RM2,000,000 Portfolio Beta 1.15 FBM KLCI Index 1,545.35 Risk-free rate 3% FKLI index

Information on your Portfolio
Expected dividend yield 0%
Index Linked Portfolio Value RM2,000,000
Portfolio Beta 1.15
FBM KLCI Index 1,545.35
Risk-free rate 3%
FKLI index 1,540.50

Assume the market falls by 15% and FKLI decreases to 1,234.5 after 3 months, what is your gain/loss from your hedging strategy?

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