In stock index future hedging, the optimal number of contracts used to hedge depends on the beta of the equity portfolio when the stock index represents the entire stock market. Which of the following regarding the beta (in the above statement) is correct?      The beta is the slope of the best fit line when the futures price (on the y-axis) is regressed against the spot price (on the x-axis).            The beta is the slope of the best fit line when the spot price (on the y-ax

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