Suppose you own a well diversified stock portfolio, Financial Management

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Suppose you own a well diversified stock portfolio

Suppose you own a well diversified stock portfolio currently worth 10 million. The portfolio has a beta of 0.8. Assume the S&P 500 futures price is 1,200. Describe in detail the futures transaction you would undertake to hedge the value of your portfolio. How many contracts would you buy or sell?

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Financial Management: Suppose you own a well diversified stock portfolio

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