Q.56 An investment analyst is tasked with calculating the hedge ratio ($\beta$) for a bond portfolio using bond futures. The following data is provided:

• The correlation between the returns of the bond portfolio and the bond futures:
  $\rho(Y_h, Y_p) = 0.6$

• The standard deviation of the bond portfolio returns: $\sigma(Y_p) = 0.08$

• The standard deviation of the bond futures returns: $\sigma(Y_h) = 0.05$

What is the hedge ratio ($\beta$) required to minimize the bond portfolio's exposure to interest rate risk?