. Assume you have stock portfolio with value xi ni Pi where ni is number of shares of stock i and Pi is the price of the stock i. Find a way to hedge a market exposure using broad market ETF "SPY (tracking S&P500 index). Start by describing the methodology for estimating sensitivity of each stock return ri(t) = log Paletten)) (+1) return of the SPY denoted m(t) below. versus Pi() = ri(T) = ai + Bm(T)+ 6 (T),1 6 [0,T] i(T) e N(0,01) Question 1: Describe methodology to estimate Bi(T). How would you handle outliers? Question 2: Is it possible to have Bi