What do you mean by minimum variance hedge ratio? It is $4$th November $2024$; you are managing a Mutual fund and wish to hedge its Rs $600$ million stock portfolio. The hedge period is five months, and the beta of the equity portfolio is $2\mathrm{.}4.$ The dividend yield on equity portfolio q is $12\mathrm{.}5\%$ per annum with semiannual compounding, and the risk$-$free interest rate r is $10\mathrm{.}5\%$ per annum with continuous compounding. You chose to hedge with April futures with T$=6/12$ years to expiry. The current level of SP $500$ is $14550,$ and the contract multiple is Rs $10$ per index point. How many futures contracts should you short in order to hedge the equity portfolio? What is the expected return on the portfolio if the SP $500$ index turns out to be $11250$ in five months and the futures price is Rs$\mathrm{.}11300$ at this time? Also find the expected value of the position of the hedger, including the gain or loss on the hedge.