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A pension fund wishes to reduce the beta of its portfolio from 1.2 to 0.5. The portfolios market value is $5 million and the quote

A pension fund wishes to reduce the beta of its portfolio from 1.2 to 0.5. The portfolios market value is $5 million and the quote for the futures price is 2200. The contract has a 250 multiplier. Rounded to the nearest whole number, how many contracts should the pension fund use and should they buy or sell the contracts?

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