In the capital asset pricing model (see chapter 6, section 6.6) it is necessary to identify portfolios, the rates of return on which have a zero correlation with any given frontier portfolio. In futures markets, contract prices are determined to balance supply and demand between sellers and buyers - the exchange authorities guarantee that the contracts will be honoured but do not initiate the buy and The exception is at the expiry date, when the realized index value is the value applied to close the bet. Black Gucci Clutch Bag. Such an approach contrasts with that of portfolio selection, in which the investor's preferences are represented by a single objective function. Gucci Flat Red. Borrowers would thus tend to offer better terms in order to persuade lenders to switch over into the long market. Black Gucci Clutch Bag. One notable feature of hedging with financial futures is that a hedge may be sought for an asset (or portfolio of assets) already in the possession of the hedger. Gucci Iman T-strap Flat Sandals. But there will always be cause to regret the decision if the price moves in the wrong direction - in this case, if interest rates fall. Black Gucci Clutch Bag. With agreement about means and variances, the efficient set of portfolios is the same for each investor.