A Swedish investment bank has a 635 million SEK bond portfolio with a portfolio beta of +1.95. The bank wants to use bond index futures contracts to quickly manipulate the level of systematic risk within the bond portfolio over time. Assume that the bond index stands at 442 and each index futures contract is for delivery of 1,200 SEK times the index. Calculate the hedge position that will (i) eliminate systematic risk from the portfolio, (ii) reduce systematic risk by 40% and (iii) increase systematic risk by 30%. Briefly explain why the bank might want to quickly manipulate the systematic risk exposure within this portfolio over time. (1 page limit) A Swedish investment bank has a 635 million SEK bond portfolio with a portfolio beta of +1.95. The bank wants to use bond index futures contracts to quickly manipulate the level of systematic risk within the bond portfolio over time. Assume that the bond index stands at 442 and each index futures contract is for delivery of 1,200 SEK times the index. Calculate the hedge position that will (i) eliminate systematic risk from the portfolio, (ii) reduce systematic risk by 40% and (iii) increase systematic risk by 30%. Briefly explain why the bank might want to quickly manipulate the systematic risk exposure within this portfolio over time. (1 page limit)