Suppose you are managing a hedge fund with a total assets worth of $1 million. You think that alpha of your portfolio is 5%. The estimated beta of your portfolio is 1.1. You also believe that market is about to decline a) (3 pts) If market declines by 10%, what is the approximate expected rate of return on your portfolio? (You can assume risk free rate equal to zero for this part (a) only) b) (10 pts) If the S&P500 current level is 2200 and the multiplier for future contracts is $250, explain the details of your strategy that helps you avoid the risk you mentioned in part(b). Assume risk free rate is 1%. c) (2 pts) What is your overall return(combination of both futures and your initial portfolio) if market return turns out to be +250%? Assume risk free rate is 1%. Suppose you are managing a hedge fund with a total assets worth of $1 million. You think that alpha of your portfolio is 5%. The estimated beta of your portfolio is 1.1. You also believe that market is about to decline a) (3 pts) If market declines by 10%, what is the approximate expected rate of return on your portfolio? (You can assume risk free rate equal to zero for this part (a) only) b) (10 pts) If the S&P500 current level is 2200 and the multiplier for future contracts is $250, explain the details of your strategy that helps you avoid the risk you mentioned in part(b). Assume risk free rate is 1%. c) (2 pts) What is your overall return(combination of both futures and your initial portfolio) if market return turns out to be +250%? Assume risk free rate is 1%