Suppose you run the following regression

DV = b₀ + b₁DF + e

where DV is the weekly change in the value of your equity portfolio and DF is the weekly change in the value of one S&P 500 futures contract. The regression results indicate that the estimate of b₀ is 162.4, the estimate of b₁ is 220.9, and the R ² is 0.03.

A. Based on the regression results, how many S&P 500 futures contracts should you trade in order to optimally hedge your portfolio?

Answer: __________________

B. Based on the regression results, should you buy or sell S&P 500 futures contracts in order to optimally hedge your portfolio?

Answer: __________________

C. After you optimally hedge using S&P 500 futures contracts, would your portfolio have much risk? (Please just answer yes or no.)

Answer: __________________