Which of the following is a reason for hedging a long-only portfolio with an index futures? The investor believes the stocks in the portfolio will perform better than the market but is uncertain about the future performance of the market The investor believes the stocks in the portfolio will perform better than the market and the market is expected to do well The portfolio is not well diversified and so its return is uncertain All

Question

16-03-2021
Business

contestada

Which of the following is a reason for hedging a long-only portfolio with an index futures? The investor believes the stocks in the portfolio will perform better than the market but is uncertain about the future performance of the market The investor believes the stocks in the portfolio will perform better than the market and the market is expected to do well The portfolio is not well diversified and so its return is uncertain All

Respuesta :

Otras preguntas

Write a paragraph in which you consider at least three differences between acquiring English and learning Standard English.

2. Why do Earth's tectonic plates move? A. Ocean currents near the mid-ocean ridge push the plates.B. Liquid iron in the outer core causes them to move.C. Gravi

help me with this plz

......... take a message,please?(will,would, can and could)

A 45 kg wooden crate is being pushed at a constant velocity on a steel floor. What is the weight of the crate? *

(-2abc)^2 simplify please

A Summer to Remember" has a distinct structure involving flashbacks, present-day narration, and multiple settings. Analyze how the structure and settings of the

The table below contains four statements. For which function below are all four statements true? The domain includes positive numbers. The x-intercept of the fu

why are teen girls the most at risk of low iron

ACCESS MORE

ayfat23 ayfat23 · Answer 1 · 2021-03-17T01:12:10+01:00

Answer:

The investor believes the stocks in the portfolio will perform better than the market but is uncertain about the future performance of the market

Explanation:

Hedging can be regarded as strategies

utilize by investors so that there would be a reduction in exposure to risk especially in event whereby asset in their portfolio can experience

sudden price decline. It's a strategy that reduce uncertainty as well as losses. It should be noted that one of the reason for hedging a long-only portfolio with an index futures is that investor believes the stocks in the portfolio will perform better than the market but is uncertain about the future performance of the market

Martebi Martebi · Answer 2 · 2022-01-04T11:55:05+01:00

There are different reason for hedging a long only portfolio with an index futures. The option that is a reason for hedging a portfolio with an index futures is that;

The investor believes the stocks in the portfolio will perform better than the market but is uncertain about the future performance of the market.

Note that index futures can be used to as a means to remove the influence of the performance of the overall market on the portfolio.

When the market is said to be doing well, that is hedging against the performance of the market is not right and therefore Hedging cannot be a means to right any wrong for a poorly diversified portfolio.

Learn more about Risk from

https://brainly.com/question/13905761