Alison is an active portfolio manager attempting to beat the S&P 1500 index regardless of...
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Alison is an active portfolio manager attempting to beat the S&P 1500 index regardless of how the index performs. Based on her current holdings, if the S&P 1500 index return is negative, her portfolio will beat the benchmark by 2%. However, if the S&P 1500 index return is positive, her portfolio is likely to underperform, earning only 90% of the index returns. What type of position in SPR index options or futures could Alison add to her current holdings in order to achieve her goal?
Alison is an active portfolio manager attempting to beat the S&P 1500 index regardless of how the index performs. Based on her current holdings, if the S&P 1500 index return is negative, her portfolio will beat the benchmark by 2%. However, if the S&P 1500 index return is positive, her portfolio is likely to underperform, earning only 90% of the index returns. What type of position in SPR index options or futures could Alison add to her current holdings in order to achieve her goal?
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