A company has a $36 million portfolio with a beta of 1.2. The futures price for a contract on an index is 900. Futures contracts on $250 times the index can be traded. What trade is necessary to reduce beta to 0.9

Short 48 contracts.

Explanation: Portfolio beta is a systematic measure, that checks all the risk in a portfolio of investments. It is used in calculating the Treynors measure in a portfolio.

The trade necessary to reduce beta;

Take the change in beta

1.2 - 0.9 = 0.3

Using the beta formula; beta coefficient multiplied by the weight of the portfolio.

0.3 × $36,000,000 = $10,800,000

The future contract times the index can be traded on

900 × $250 = $225,000

Therefore the trade necessary to reduce beta will be

$10,800,000 ÷ $225,000 = 48

This means that we have to short 48 contract if we want beta to reduce from 1.2 to 0.9

the correct answer would be b, when, queen, calder hall and london.

explanation:

we always capitalize words when a paragraph or sentence is starting, when an important name is used, when a place is being written, or simply when a noun is used, etc. so in this sentence, sentence is starting from 'when', so it will be written in capital letters. secondly, queen is considered to be an important person, so it will also be written in capital letter. next, the name of the town is mentioned, i-e calder hall, which will also be written in capital letters. in the last,   city name is being used, 'london', which will also be written in capital letters. so option b is the most appropriate one.

the correct option is c