How many contracts must buy or sell

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Question: Modern Portfolio Managers (MPM) hold a 4.5 million dollar portfolio of stocks with a beta of 1.1 measured with respect to the S&P 500 index. The current value of a futures contract on the index is 1069. 1. The multiplier on the futures equals $250. If MPM wishes to hedge the systematic risk in its portfolio, how many contracts must it buy or sell?

Reference no: EM132001661

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