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. A company has a $ 2 0 million portfolio with a beta of 1 . 2 . It would like to use futures con
A company has a $ million portfolio with a beta of It would like to use futures con tracts on a welldiversified stock index to hedge its risk.The index futures price is currently and each contract is for delivery of $ times the index. What is the hedge that minimizes risk? What should the company do if it wants to reduce the beta of the portfo lio to
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