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NEW QUESTION: 1
When hedging an equity portfolio with index futures that carry no basis risk, the number of futures contracts to hold is determined by:
A. the risk free rate and the systematic risk of the portfolio
B. the volatility of the equity portfolio
C. All of the above
D. the equity portfolio's beta, the value of the portfolio, and the notional value of one futures contract
Answer: D
Explanation:
Explanation
When hedging an equity portfolio with index futures, the number of futures contracts to hold is given by the
[beta x value of portfolio/value of one futures contract]. Therefore Choice 'a' is the correct answer.
The volatility, risk free rate have nothing to do with determining the number of futures contracts to hold.
Systematic risk is expressed in the form of beta. Therefore the other choices are incorrect.

NEW QUESTION: 2
Which three of the following components are required to get a SmartEvent up and running? 1) SmartEvent SIC 2) SmartEvent Correlation Unit 3) SmartEvent Server
4) SmartEvent Analyzer
5) SmartEvent Client
A. 2, 3, and 5
B. 1, 2, and 4
C. 3, 4, and 5
D. 1, 2, and 3
Answer: A

NEW QUESTION: 3
What creating a new toolkit, which attribute is required?
A. Acronym
B. Documentation
C. Version number
D. Date
Answer: C