stock market declines, portfolio return, business contracts, business law, portfolio, dividends
Not what you're looking for?
Please help with the following problems. Provide step by step calculations for each.
If the S&P contracts have a multiplier of $500 and your $2.0M hedge fund stock portfolio has a beta of 1.2, then your portfolio position can be hedged from overall stock market volatility for 3 months by selling how many S&P futures contracts beginning of the quarter? Assume the S&P index is at 1,200 and for simplicity, your portfolio pays no dividends.
Assume if your portfolio alpha is 4%. What would be your portfolio return if the stock market declines by 10% during the quarter? Explain your answer.
Purchase this Solution
Solution Summary
The following posting helps problems regarding stock market declines and portfolio returns. Step by step calculations are given for each problem.
Solution Preview
Please see the attached file(s) for the complete tutorial
Anna, 108710
Problem: Assume if your portfolio alpha is 4%. What would be your portfolio return if the stock market declines by 10% during the quarter?
Question 2
Formula:
[$2,000,000/(1,200 x $500)] x 1.20 = 4 ...
Purchase this Solution
Free BrainMass Quizzes
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Learning Lean
This quiz will help you understand the basic concepts of Lean.