One potential defensive strategy would be

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Reference no: EM132002366

1. If you expect a stock market downturn, one potential defensive strategy would be to

1. Write puts on the market

2. Write calls on the market

3. Buy stock index futures trying to lock in the price

4. Short sell puts on the market

2. Ideally, the weights used in calculating the weighted average cost of capital for a future project should be based on

1. the optimal or target capital structure.

2. historical capital structure.

3. the market values of the investor-supplied capital.

4. the actual capital supplied by investors based on book-values.

Reference no: EM132002366

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