[经济学]期货期权Ch03.pptVIP

3.* Hedging Price of an Individual Stock Similar to hedging a portfolio Does not work as well because only the systematic risk is hedged The unsystematic risk that is unique to the stock is not hedged 3.* Why Hedge Equity Returns May want to be out of the market for a while. Hedging avoids the costs of selling and repurchasing the portfolio Suppose stocks in your portfolio have an average beta of 1.0, but you feel they have been chosen well and will outperform the market in both good and bad times. Hedging ensures that the return you earn is the risk-free return plus the excess return of your