Question: Given the following information, please find 1) The optimal hedging ratio;2) The effectiveness of the hedging;3) The number of futures contracts on the S&P 500

Given the following information, please find 1) The optimal hedging ratio;2) The effectiveness of the hedging;3) The number of futures contracts on the S&P 500 index. *Use the past five-year monthly data (April 01,2015 ~ April 30, 2020) to find the answers.Portfolio:Value: $100 million.Component stocks:25% on IBM20% on TSLA55% on WMT

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