Series 3 Practice Test 8

10 free Series 3 practice questions in the real exam format, covering the official content areas, with an explanation for every answer.

Series 3 Practice Test 8Tutor mode

Question 1 of 10

Market Knowledge

A portfolio manager holds a $12,000,000 stock portfolio with a beta of 1.2 and wants to hedge it against a market decline. The stock index futures contract is priced at 6,000 and has a multiplier of $50 per index point. Which hedge is appropriate?