16/16 HELP! I HAVE A TIMED ASSIGNMENT. THERE ARE OTHER QUESTIONS POSTED. THANK YOU!

A manager at Howard's Hedge Fund believes that Leonard's Lunar Landing stock is underpriced, with an alpha of 2% over the coming month. Below are selected statistics from a regression of monthly returns on Leonard's Lunar Landing stock against the S&P 500 index. Standard Deviation Beta R-square of Residuals 0.5 0.65 0.12 (i.e., 12% monthly) a. If the manager holds a $3 million portfolio of Leonard's Lunar Landing stock, and wishes to hedge market exposure for the next month using 1-month maturity S&P 500 futures contracts, how many contracts should he enter? The S&P 500 currently is at 1,200 and the contract multiplier is $250. Number of contracts b. Should Howard's Hedge Fund buy or sell contracts? O Buy O Sell c. What is the standard deviation of the monthly return of the hedged portfolio? Standard deviation % A manager at Howard's Hedge Fund believes that Leonard's Lunar Landing stock is underpriced, with an alpha of 2% over the coming month. Below are selected statistics from a regression of monthly returns on Leonard's Lunar Landing stock against the S&P 500 index. Standard Deviation Beta R-square of Residuals 0.5 0.65 0.12 (i.e., 12% monthly) a. If the manager holds a $3 million portfolio of Leonard's Lunar Landing stock, and wishes to hedge market exposure for the next month using 1-month maturity S&P 500 futures contracts, how many contracts should he enter? The S&P 500 currently is at 1,200 and the contract multiplier is $250. Number of contracts b. Should Howard's Hedge Fund buy or sell contracts? O Buy O Sell c. What is the standard deviation of the monthly return of the hedged portfolio? Standard deviation %