Intro Your pension portfolio is invested primarily in US Treasuries (bonds). It is worth $3 million and it has a beta of 0.5. You want to increase the market risk of your portfolio for the next 3 months by using 3-month S&P 500 index futures contracts. Suppose that the futures contract multiplier is $250 and that the current level of the S&P 500 index is 2,815. Part 1 - Attempt 1/1 for 10 pts. How many S&P 500 index futures contracts do you need (rounded to the nearest integer) to increase the beta of your portfolio to 2? Enter a positive number for buying and a negative number for selling the contracts. 9 -6 5 8 6 3 Submit Part 2 Attempt 1/1 for 10 pts. After 3 months, your futures contract expired. The S&P 500 index dropped to a level of 2,252 and your portfolio is now worth $2.25 million. Suppose the beta of your portfolio is now 0.6. You again decide to increase the market beta of your portfolio over the next 3 month to a more conservative value (compared to the previous 3 months) of 1.4. How many S&P 500 index futures contracts do you need (rounded to the nearest integer) to increase the beta of your portfolio to 1.4? Enter a positive number for buying and a negative number for selling the contracts. -4 2 4 -3 3 5 Submit