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An investor has a portfolio of $5,000,00 invested in US equities (S&P500 stocks) and the portfolios beta is 1.5. The value of the S&P500 equity

An investor has a portfolio of $5,000,00 invested in US equities (S&P500 stocks) and the portfolios beta is 1.5. The value of the S&P500 equity index is 3900. Explain how they could hedge their cash portfolio with S&P500 index futures and calculate how many contracts would be needed to execute such a hedge.

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