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You are managing a bond portfolio, currently valued at $50 million. You are concerned about the current turmoil in the bond market and want to

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You are managing a bond portfolio, currently valued at $50 million. You are concerned about the current turmoil in the bond market and want to hedge the market risk with the Treasury bond (i.e., T-bond) futures contract. To do so, you run a regression of your portfolio returns on the corresponding T-bond futures returns and obtain the following result: rP=0.4+1.5rTbondfutures+P Note that each T-bond futures contract is for a principal of $100,000. How many T-bond futures contracts should you buy or sell to hedge your bond portfolio

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