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If you add one stock futures contract (such as S&P 500 stock futures contract) to your stock portfolio of $2 million with a beta of
If you add one stock futures contract (such as S&P 500 stock futures contract) to your stock portfolio of $2 million with a beta of 0.7, how would it affect its beta? Raising it or reducing it. Explain (use a numerical example, if S&P 500 futures =4100).
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