You are managing $50 million of a stock portfolio with a beta of 1.6. The S&P 500 index contract are currently selling for 1,100 points. Each point of stock index futures is worth $250. To hedge the systematic risk of the portfolio, (i) which position would you take in S&P 500 index futures contract, long (purchase) or short (sell), and by how many contracts? (ii) If the market is down by 10%, what is the gain/loss of the hedged portfolio?