2- a Take a bond portfolio whose modified duration is-5; the portfolio's value is $2,000,000. the portfolio value change if the yield rises by 1 basis point (0.01% or How much will 0.000? 3 points) b. If you want to hedge this portfolio against an increase different bond whose modified duration is -10, will you buy or sell this hedge bond, and how much in value (i.e. not principal amount) will you in yield (decline in value) using a buy or sell? (3 points) Take a stock portfolio with a value of S5,000,000 whose beta is 1.05. How much portfolio value change if the S&P500 ("The Market") rises by 5%? (3 points) and will the the b. If you hedge this portfolio against a decline in value 1.0, will you buy or using a different stock whose is sell this hedge stock, and how much will you buy or sell?(3 points) riefly describe the meaning of "hedging". (6 points)