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Modern Portfolio Managers ( MPM ) hold a 1 9 million dollar portfolio of stocks with a beta of 1 . 2 5 measured with
Modern Portfolio Managers MPM hold a million dollar portfolio of stocks with a beta of measured with respect to the S&P index. The current value of the index is and the current value of a futures contract on the index is The multiplier on the futures equals $ If MPM wishes to hedge the systematic risk in its portfolio, how many contracts must it buy or sell?
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