3. 13 points) Martin has a $650,000 portfolio with a beta of 1.10. Instead of trading in and out of his positions, he would like to use futures contracts on a stock index to hedge his risk. The index futures are currently standing at 1298, and each contract is for delivery of 200 times the index. a. What is the hedge that minimizes risk (number of contracts) completely? Be sure to indicate the position direction (long/short). b. If Connor wishes to increase his beta to 1.30, what action should he take? Be sure to indicate the size of the position and position direction (long/short). c. If Connor wishes to reduce his beta to 0.80, what action should be take? Be sure to indicate the size of the position and position direction (long/short)