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You manage a $ 1 5 million dollar stock portfolio with a beta of 1 . 2 . You are worried that stock prices may
You manage a $ million dollar stock portfolio with a beta of You are worried that stock prices may fall and you wish to reduce the effective portfolio beta to If the current stock futures contract price quote is how many stock futures contracts should you choose to accomplish your goal? Use the contract and terms we used in class. Should you buy or sell the stock futures?
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