3 Question 5 10 pts A hedge fund has a $20 million portfolio with a beta of 2. The fund manager is concerned about the stock market over the next 3 months. He plans to use 4-month S&P 500 index futures to hedge his market exposure. One contract is worth $250 times the futures price. The S&P 500 index is currently at 3,200. The continuously compounded interest rate is 2% and the dividend yield of S&P 500 is 1.5%. Calculate the return of the hedging strategy relative to the original portfolio if S&P 500 drops to 3,000 in 3 months. -15.73% 15.73% 12.73% None of these. -12.73%