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15. A pension fund wishes to reduce the beta of its portfolio from 1.2 to...

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Finance

15. A pension fund wishes to reduce the beta of its portfolio from 1.2 to 0.5. The portfolio's market value is $5 million and the quote for the futures price is 2200. The contract has a 250 multiplier. Rounded to the nearest whole number, how many contracts should the pension fund use and should they buy or sell the contracts? A) buy 9 contracts B) sell 9 contracts C) buy 6 contracts D) sell 6 contracts E) buy 2 contracts.

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