A corporation wants to cross-hedge with future contracts. Using linear regression, a financial analyst has calculated the
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A corporation wants to cross-hedge with future contracts. Using linear regression, a financial analyst has calculated the items shown in the table below. If the corporation uses the optimal number of contracts how much of the variance can be eliminated by hedging?
intercept-0.00935
beta-0.497
standard error of beta-0.173
R-squared 0.976
degree of freedom-73
Related Book For
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
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