At this meeting, 75 bp interest rate hike is already expected; what is unknown is whether Fed will signal a slowdown in further interest rate hikes or further hikes at the same pace. In the former case, bonds and stocks will gain; in the latter case, a sell-off may hit both bonds and stocks. TASK: Suppose you are an investor holding bonds or stocks (choose one of them as your case). 1) State what risk you are exposed to (1 or 2 sentences) 2) State the appropriate action to hedge against that risk (1 sentence) 5) Calculate your profit/loss on this hedge position. 6) Write a brief description of what happened (i.e., why the market moved and why your hedge position ended up with a profit or loss)... Type your stated answers, calculation on a word doc