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You manage a stock portfolio worth $3,000,000 that has a beta of 1. In order to hedge the portfolio, you decide to trade S&P 500 futures contracts.

You manage a stock portfolio worth $3,000,000 that has a beta of 1.25. In order to hedge the portfolio, you decide to trade S&P 500 futures contracts. Each contract is worth $250 per index point. How many contracts do you need to buy or sell if the S&P 500 index is currently at 1,500?

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