Imagine you are a provider of portfolio insurance. You are establishing a 4-year program. The portfolio you manage is currently worth $104 million, and you hope to provide a minimum return of 0%. The equity portfolio has a standard deviation of 22% per year, and T-bills pay 4% per year. Assume for simplicity that the portfolio pays no dividends (or that all dividends are reinvested).

a-1. How much should be placed in bills? (Do not round intermediate calculations. Round your answer to 2 decimal places. Enter your answer in millions. Omit the "$" sign in your response.)

a-2. How much in equity? (Do not round intermediate calculations. Round your answer to 2 decimal places. Enter your answer in millions. Omit the "$" sign in your response.)

b-1. What is the delta of the new portfolio if the stock portfolio falls by 7% on the first day of trading? (Do not round intermediate calculations. Round your answer to 4 decimal places. Negative amount should be indicated by a minus sign.)

b-2. Complete the following (Do not round intermediate calculations. Round your answer to 2 decimal places. Enter your answer in millions. Omit the "$" sign in your response.):

Assuming the portfolio does fall by 7%, the manager should ________(buy/sell) $_______ million in stock.