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  3. 21. you manage a portfolio which has a beta of 0.7

21. You manage a portfolio which has a beta of 0.7 and the portfolio is...

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21. You manage a portfolio which has a beta of 0.7 and the portfolio is worth 4 m completely hedge your portfolio, you decide to trade S&P 500 futures contracts. Each con worth 250 per index points. How many contracts you need to buy sell if the S&P 500 index htly at $12 index porrortfolio, you beta of 0.7 s. How muccide to trade de portfolio ir dobio is worth $4 million. In order to ontracts. Each contract is 22. Suppose the return on a market portfolio is 11% and a risk free rate is 3%. What is the dividend yield of a stock which has a beta = 0.75, the stock paid $0.80 dividend and is expected to grow at a con- stant rate of 4% per year? 23. The exchange rate between the US dollar (USD) and the Euro (EURO) was 1 USD = 0.8 EURO at the beginning of year 2018. Over the year, US inflation was 3% while the inflation rate in Europe was 1%. What should be the exchange rate at the end of 2015, if purchasing power parity holds

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