equitizing long/short short

pimpineasy

invest in futures for the same amount as proceeds from short sale? (first choice i believe?)

IAmNeil

I went A as well...must've switched between A & B a dozen times

nannan66

i think so too....

NakedPuts2011

but if you're long one market short the other, you're neutral, where is the equitized portion

wake2000

I chose B - cannot underweight beyond index weight. Pretty sure this is right. THoughts?

Chuckrox

"but if you're long one market short the other, you're neutral, where is the equitized portion"

i thought buying futures would equitize the long/short portfolio

pennyless

B & C had the same result- Answer had to be A

lcai

A=1st statement?

Unforseen

equitizing a mkt neutral is basically giving it equity exposure (beta) that is doesn't have...thus buying a futures contract - don't recall which choice that was

canadiananalyst

Oh yeah, the answer for this was A

I am talking about a different question, the difference between long/short equity and another method (can't remember)