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How many contracts must it buy or sell

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Question - Modern Portfolio Managers (MPM] hold a 8.0 million dollar portfolio of stocks with a beta of .65 measured with respect to the S&P 500 index. The current value of a futures contract on the index is 1045.2. The multiplier on the futures equals $250. If MPM wishes to increase its systematic risk in its portfolio to .85. How many contracts must it buy or sell?

Reference no: EM133044167

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