You have a well-diversified portfolio currently worth 100,000. The FTSE 100 index is currently priced at 6500. Your portfolio has a 25% higher uncertainty against the FTSE 100 index futures and has a 0.7 correlation with the FTSE 100 index futures. The FTSE 100 index futures prices is 6600 and the contract has a multiplier of 50. (i) What is the hedge ratio? (ii) Explain how you would hedge this portfolio, if you wish to be fully hedged