Suppose that the relationship between the rate of return on Digital Computer Corp. stock, the market index, and a computer industry index can be described by the following regression equation: rDigital = .5rM + .75rIndustry. If a futures contract on the computer industry is traded, how would you hedge the exposure to the systematic and industry factors affecting the performance of Digital stock? Specifically, how many dollars’ worth of the market and industry index contracts would you buy or sell for each dollar held in Digital? P-63