Consider a portfolio manager who wishes to reduce the allocation to equities in his portfolio by $500

Question:

Consider a manager who wishes to reduce the allocation to equities in his by $500 million. The manager is concerned that equity prices may drop quickly. Assume that the beta of the under management is 0.90. A stock index futures contract is quoted at 1052 and has a multiplier of 250. The current stock index stands at 1050.
a. Indicate how the manager can reduce the exposure to equities by using stock index futures.
b. How many contracts should be bought or sold?
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...