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Explain how a portfolio manager can eliminate the systematic risk of his stock portfolio over...

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Accounting

Explain how a portfolio manager can eliminate the systematic risk of his stock portfolio over the next month using futures on the S&P 500 index. What return does the manager expect on the hedged portfolio over the next month? What position in the S&P 500 futures should the manager take if he wants to reduce (rather than eliminate) the systematic risk of his stock portfolio by, e.g., 20% over the next month?

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