Question: Suppose you run the following regression V = 0 + 1 F + where V is the weekly change in the value of your equity

Suppose you run the following regression V = 0 + 1 F + where V is the weekly change in the value of your equity portfolio and F is the weekly change in the value of one S&P 500 futures contract. The regression results indicate that the estimate of 0 is 162.4, the estimate of 1 is 220.9, and the R 2 is 0.03. A. Based on the regression results, how many S&P 500 futures contracts should you trade in order to optimally hedge your portfolio?

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