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Suppose you run the following regression where is teh weekly change in the value of your equity portfolio and is the weekly change in the
Suppose you run the following regression
where is teh weekly change in the value of your equity portfolio and is the weekly change in the value of one S&P 500 futures contract. The regression results indicate that the estimate of is 162.4, the estimate of is 220.9, and is 0.03.
B. Based on the regression results, should you buy or sell S&P 500 futures contracts in order to optimally hedge your portfolio?
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