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changing the beta of a portfolio with stock index futures

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You wish to hedge 90 percent of the current portfolio value with futures. The value of the portfolio is $50 million and tracks the S&P 500 index. The index is 1,076.32 ($250 per point) and the portfolio has a beta of 1.2. Calculate the appropriate hedge using futures contracts.

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Changing the beta of a portfolio with stock index futures is depicted.

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Hello!
The action you should take for changing the beta of a portfolio with stock index futures (such as the futures on S&P 500) is:

Short (B - Bt)*(P/A) if B>Bt
Long (Bt - B)*(P/A) if Bt>B

where B is the portfolio's beta (in this ...

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