hedging via futures equity, return, provide, 2011

willsucceed

wen we hedge an all equity portfolio via futures, making its beta=0, what is our earning in case the markets go up by 10%? do we earn risk-free rate of return? plz provide a proof with d help of nos.



Edited 1 time(s). Last edit at Friday, May 6, 2011 at 01:08AM by kanupriya_newatia.