6.Suppose you wanted to design a minimum risk hedge for a portfolio of blue chip stocks using S&P

500 index futures.Describe carefully what regression you would run to find the risk minimizing hedge ratio.Be explicit about what variables you would use and how you would set up the regression.Tell how you would convert the hedge ratio into a number of S&P 500 index futures contracts to trade.Make sure your answer is sufficiently unambiguous that a research assistant could execute your instructions and get the right hedge.