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What trade is necessary to reduce beta

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Reference no: EM133042369

Question - A company has a $36 million portfolio with a beta of 1.2. The futures price for a contract on an index is 900. Futures contracts on $250 times the index can be traded. What trade is necessary to reduce beta to 0.9?

a. Long 192 contracts

b. Short 192 contracts

c. Long 48 contracts

d. Short 48 contracts

Reference no: EM133042369

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