Hi, Need help with this.

Assume you have stock portfolio with value DX, n;P; where n; is number of shares of stock "i and P; 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 (Pty) () return of the SPY denoted m(t) below. versus ri(T) = Qi + Bim(T) + (T), TE (0,T] (7) + N(0,i) Question 1: Describe methodology to estimate Bi(T). How would you handle outliers? Question 2: Is it possible to have B;