What price of the index will the retail investor be

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Reference no: EM132808816

Problem 1: Compared to the risks of overweighing a stock in an active equity portfolio, the risk of underweighting or shorting a stock is generally

A. symmetric, the risks are the same

B. higher for the underweight or short position

C. lower for the underweight or short position

Problem 2: S&P 500 E-mini futures have an initial and maintenance requirement of $13,200 and $12,000 respectively. Assume a retail investor purchases 25 E-mini futures priced at 2,875. Each futures contract has a multiplier of $50. At what price of the S&P 500 Index will the retail investor be asked to post maintenance margin?

A. 2,779

B. 2,851

C. 2,825

Reference no: EM132808816

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