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John Q. Investor manages an equity portfolio with a market value of$9,500,000. The portfolio beta is 1.6. John Q. finds this somewhat overly aggressive for

John Q. Investor manages an equity portfolio with a market value of$9,500,000. The portfolio beta is 1.6.

John Q. finds this somewhat overly aggressive for the client's risk profile and sells 80 DJIA futures contracts. The contract is defined as $10 times index and is currently trading at 15522.

John Q. anticipates that this hedge will reduce the portfolio beta to jQuery22403083005135870205_1573776776958??

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