6.Your company also owns a $10,000,000 stock portfolio. Your boss wants to hedge half of the portfolio using e-mini S&P 500 futures and puts you in charge of doing it.

The returns for the last 6 months for the portfolio and the S&P 500 have been:

Month Portfolio S&P 500

1 8% 4%

2 4% 1%

3 -12% -3%

4 8% 2%

5 0% 0%

6 -4% -2.5%

What do you do?