SP.2.47: Mr. Ramesh, on 1st April 2017, has constructed a portfolio consisting of five shares the detail of which is given below. April to Jure The annual cost of capital to the investor is 10% (continuously compounded) and current: value of the Nifty is 9950 . You are required to: (i) Calculate beta of the portfolio. (ii) Calculate the fair value of the Nifty June futures. (iii) If Nifty futures contract has a lot size of 75 units, find the number of contracts of Nifty futures the investor needs to short in order to get a full hedge until June for his portfolio. Assume that the Nifty futures are trading at their fair value. (iv) Calculate the number of futures contracts the investor should trade if he desires to reduce the beta of his portfolio to 0.75