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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

image text in transcribed

where image text in transcribed is teh weekly change in the value of your equity portfolio and image text in transcribed is the weekly change in the value of one S&P 500 futures contract. The regression results indicate that the estimate of image text in transcribed is 162.4, the estimate of image text in transcribed is 220.9, and image text in transcribed 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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