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I need help ASAP Please. You have been assigned to implement a three-month...

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Finance

I need help ASAP Please.

You have been assigned to implement a three-month hedge for a stock mutual fund portfolio that primarily invests in medium-sized companies. The mutual fund has a beta of 1.49 measured relative to the S&P Midcap 400, and the net asset value of the fund is $189 million. Should you be long or short in the Midcap 400 futures contracts? Assuming the Midcap 400 Index is at 650 and its futures contract size is 500 times the index, determine the appropriate number of contracts to use in designing your cross-hedge strategy.

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