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b. A company has a $20 million portfolio with a beta of 0.6. It would like to use futures contracts on a stock index to

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b. A company has a $20 million portfolio with a beta of 0.6. It would like to use futures contracts on a stock index to hedge its risk. The stock index futures price is currently standing at 1080, and each contract is for delivery of $250 times the index. What is the hedge that minimizes risk? What can the company do if it wants to change the beta of the portfolio to 1.2

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