In this video we discuss how to change the beta of a stock portfolio using S&P 500 Index Futures. In particular the S&P 500 Micro E-mini Index future is used to both lower and increase the beta of a stock portfolio. Reasons for changing the beta, such as stock market valuation and capital gains tax avoidance, are also discussed. This problem is similar to a problem in the Hull, "Options, Futures, and Derivatives" from the chapter on Hedging Strategies Using Futures.
