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You manage a $600 million stock portfolio with a beta of 1.45. The 90 day futures price for SP 500 index is 3250. You expect

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You manage a $600 million stock portfolio with a beta of 1.45. The 90 day futures price for SP 500 index is 3250. You expect the market to decline in the near future. How can you hedge your portfolio against market decline by using futures? Why is beta used to determine the number of contracts

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