Question 16 Modern Portfolio Managers (MPM) hold a 4.5 million dollar portfolio of stocks with a beta of 1.1 measured with respect to the S&P 500 index. The current value of a futures contract on the index is 1069. 1. The multiplier on the futures equals $250. If MPM wishes to hedge the systematic risk in its portfolio, how many contracts must it buy or sell? O Sell 16.836 O Buy 1.0454 O Sell 1.0454 O Buy 18.52 O Sell 18.52 Question 10 An investor receives $1036.0 in 2.0 weeks for an initial investment of $1000,0. What is annual percentage return with continuous compounding? O 1.7684 0 28.766 O 46.861 O 91.955 0 150.82