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A portfolio manager has a $250 million dollar stock portfolio with a beta of 1.25. He decides he wants to target a beta of 1.05

  1. A portfolio manager has a $250 million dollar stock portfolio with a beta of 1.25. He decides he wants to target a beta of 1.05 using E-mini S&P 500 index futures. Assuming the S&P 500 index is trading at 3,000 and each futures contract represents $50 times the index, what action should he take?
    1. Sell 333 contracts
    2. Buy 380 Contracts
    3. Sell 400 Contracts
    4. Buy 600 Contracts
    5. Buy 810 Contracts

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