A company has 30 million portfolio with a beta of 15 the

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A company has $30 million portfolio with a beta of 1.5. The futures price for a contract on the S&P index is 900. Futures contracts on $250 times the index can be traded. What trade is necessary to archive(a) eliminate all systematic risk in the portfolio,(b) reduce the beta to 1.0, or(c) increase beta to 2.0.

Reference no: EM13479531

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