3. You are the manager of a stock portfolio worth $10,500,000. It has a beta of 1.15, During the neur portf months, you expect the fear of a deep recession will take market down by about 5 percent, thus, Our is expected to fall about 5.75% (5% times beta of 1.15). You wish to lower the beta to 100 A stock utures contract with the appropriate expiration is priced at 425.75 with a multiplier of $500. (2 points a. Should you buy or sell futures? How many contracts should you use? . Determine the profit and portfolio return over the quarter. How close did you come to the desired result? [Hint: Compare by taking the ratio of the return with hedge to the return without hedge.] b. In three months, the portfolio has fallen in value to $9,870,000. The futures price has fallen to 402.35