Which of the following are needed to determine the number of stock index futures required to cross-hedge a stock portfolio?
I. standard deviation of the stock portfolio
II. beta of the stock portfolio
III. value of the index futures contract
IV. value of the stock portfolio
A) I and III only
B) II and IV only
C) I, II, and III only
D) II, III, and IV only
E) I, III, and IV only
Correct Answer:
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