Problem 15-08 Alex Andrew, who manages a $94 million large-capitalization U.S. equity portfolio, currently forecasts that equity markets will decline soon. Andrew prefers to avoid the transaction costs of making sales but wants to hedge 513 milion of the portfolio's current value in SAP So futures Because Andrew realize that his portfolio will not track the S&P 500 Index exactly, he performs a regression analysis on his actual portfolio returns versus the S&P 500 futures returns over the past year. The regression analysis indicates a risk-minimizing beta of 0.90 with a correlation coefficient of 0.96. Futures Contract Data S&P 500 futures price S&P 500 index S&P 500 index multiplier Calculate the number of tutures contracts required to hedge 513 million of Andrew's portfolio, using the data shown Round your answer up to the nearest whole number contracts State whether the hedge is long or short. The hedge ist Save Continue without