Modern Portfolio Managers (MPM) hold a 8.0 million dollar po…

Modern Portfolio Managers (MPM) hold a 8.0 million dollar portfolio of stocks with abeta of 0.65 measured with respect to the S&P 500 index. The current value of a futurescontract on the index is 1045. 2. The multiplier on the futures equals $250. If MPM wishesto increase its systematic risk in its portfolio to . 85, how many contracts must it buy orsell?