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Your portfolio beta is 1.25. You believe that equity prices will increase and wish to increase equity exposure on $530 million of the portfolio. Calculate
Your portfolio beta is 1.25. You believe that equity prices will increase and wish to increase equity exposure on $530 million of the portfolio. Calculate the number of contracts you would need to hedge your position and indicate whether you would go short or long. Assume that the price of the S&P 500 futures contract is 2,350 and the multiplier is 250.
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