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. Short 48 contracts B. Long 192 contracts C. Long 48 contracts D. Short 192 contracts

A company has a $36 million equity portfolio with a beta of 0.9. The futures price on the S&P index for a contract delivering in 6 months is currently trading at 900. Futures contracts on $250 times the index can be traded. What trade is necessary to increase the beta to 1.2 over the next 4 months?Group of answer choicesShort 48 futures contracts and close out the position in 4 monthsShort 48 futures contracts and close out the position in 6 monthsShort 192 futures contracts and close out the position in 6 monthsLong 48 futures contracts and close out the position in 4 monthsLong 48 futures contracts and close out the position in 6 months

You invest $600 in a security with a beta of 1.2 and $400 in another security with a beta of 0.90. The beta of the resulting portfolio is a. 1.04b. 1c. 0.98d. 1.70

Given: risk-free rate of return = 5 % market return = 10%, cost of equity = 15% value of beta (β) is:a.1.9b.1.8c.2.0d.2.2

The equations set in the beta economy are as follows:Y=7,000G=1,500T=1,200C=200+0.8(Y−T)I=1,200−4,000rNX=400−600ϵr=r∗=0.04​In a beta economy, which of the following options correctly describes the balance of trade?A.A. The economy has a trade surplus of 380 units.B.B. the economy has a trade deficit of 380 units.C.C. the economy has a zero trade balance.D.D. the economy has a trade deficit of 760 units.

Suppose there are 5 stocks with the following betas:βA= 0.5, βB= 1.2, βC= 0.6, βD= 1, βE= 0.8A portfolio manager decides to invest £100,000 in a portfolio comprising these 5 stocks as follows:A = £20,000, B = £10,000, C = £25,000, D = £15,000, E = £30,000What is the beta of the portfolio?