An investor holds an equity portfolio with the current value of $5.3 million. The investor is interested in changing his exposure to movements in the market over the next ten-month and decides to use the eleven-month S&P 500 futures contract. The index is currently 2831, and one contract is for the delivery of $250 times the index. The beta of the portfolio is 1.6. 1) a. If the investor would like to hedge the risk of the portfolio, how many index futures contracts should the investor enters into? (Note: keep two decimal places.) Answer: 1) b. In the above question (part a. of 1)), the investor should take a position in the futures contracts 2) a. If the investor expects the market will perform well in the next few months, how many index futures contracts should the investor enter into to increase the beta of the portfolio to 2.5? (Note: keep two decimal places.) Answer: 7 . 2) b. In the above question (part a. of 2)), the investor should take a position in the futures contracts. 3) If the investor takes a short position in 15 index futures contracts, what is the resulting beta of the portfolio (with the stocks and the futures contracts)? (Note: keep four decimal places.)