An investment firm has a portfolio worth $14 million with a beta of 1.4. Currently, the futures
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Question:
An investment firm has a portfolio worth $14 million with a beta of 1.4. Currently, the futures price for a contract on an index is 1280. Futures contracts on $250 times the index can be traded. What should the firm do to reduce beta of its portfolio to 0.8?
(Round your answer to nearest number)
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