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  3. 2) a company has a $20 million portfolio with a be

2) A company has a $20 million portfolio with a beta of 1.2. It would...

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Finance

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2) A company has a $20 million portfolio with a beta of 1.2. It would like to use futures contracts on a stock index to hedge its risk. The index futures is currently standing at 1080, and each contract is for delivery of $250 times the index. (a) How many contracts and what position that the company should enter to minimize risk? (b) What should the company do if it wants to reduce the beta of the portfolio to 0.6

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