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Suppose you have a well-diversified stock portfolio with a beta of 1.40 valued at $4,550,000. You have just hedged the portfolio with 20 S&P 500

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Suppose you have a well-diversified stock portfolio with a beta of 1.40 valued at $4,550,000. You have just hedged the portfolio with 20 S&P 500 E-mini (ES) futures contracts. The hedge was opened at a futures price of 4,323.50. If the market were to decline by 20%, what would be the combined value of your stock portfolio and your futures position? Round to the nearest dollar. (ES contract size is $50 times the futures price.) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac)

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