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3. A company has a $5 million portfolio with a beta of 1.25. It would like to use futures contracts on a stock index to hedge its risk. The index futures are currently standing at 989, and each contract is for delivery of $200 times the index. a. What is the hedge that minimizes risk (number of contracts) completely, being sure to indicate the position direction as well? b. If the company wishes to reduce their beta to 0.90, what action should the company take (be sure to indicate the position and position direction)? If the company wishes to increase their beta to 1.55, what action should the company take (be sure to indicate the position and position direction)