You have been assigned to implement a three-month hedge for a stock mutual fund portfolio that primarily invests in medium-sized companies. The mutual fund has a beta of 1.16 measured relative to the S&P Midcap 400, and the net asset value of the fund is $156 million. a. Should you be long or short in the Midcap 400 futures contracts? Short Long b. Assuming the Midcap 400 Index is at 634 and its futures contract size is 500 times the index, determine the appropriate number of contracts to use in designing your cross-hedge strategy. (Do not round intermediate calculations. Round your answer to the nearest whole number.) Contracts

A mutual fund is a group of investments that is expertly supervised by a money manager. a trust that, after receiving funds from an amount of participants who share similar investing objectives, invests them in stocks, bonds, marketable securities, and/or other commodities.

Is investing in mutual funds a wise idea?

Anyone wishing to diversify their portfolios may find mutual funds to be a beneficial investment. Find out if investing in mutual funds is the correct choice for you. Mutual funds provide convenience and diversification at a cheap cost, but whether you should participate in such depend on your particular circumstances.

To know more about Mutual fund visit:

https://brainly.com/question/13247161

#SPJ4