Most important factors to consider in making this decision

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Reference no: EM131075882

You own an equally weighted portfolio of 50 different stocks worth about $5,000,000. The stocks are from several different industries and the portfolio is reasonably well diversified. Which do you think would provide you with the best overall hedge: a single position in index futures or 50 different positions in futures contracts on the individual stocks? What are the most important factors to consider in making this decision?

Reference no: EM131075882

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