(b) You are the manager of a stock portfolio worth $5,000,000. The portfolio has a beta of 1.20. Over the last three months the market had a wonderful run and the value of the portfolio increased by 10 percent to reach to its current value of $5,000,000. During the next three months, you expect a correction in the market that will take the market down about 5 percent; thus, your portfolio is expected to fall about 6 percent (5 percent times a beta of 1.20). You want to lower the beta to 1. A particular stock index futures contract with the appropriate expiration is priced at 425 with a multiplier of $500. What strategy will you apply to reduce the beta using the stock index futures? In three months, the portfolio has fallen in value to $4,500,000. The futures price has fallen to 405. Determine the profit and portfolio return over the quarter