Question: 1) Please use your own words to explain what a hedge ratio is 2) What major risks are pension immunizing portfolios trying to hedge against?

1) Please use your own words to explain what a hedge ratio is

2) What major risks are pension immunizing portfolios trying to hedge against?

3) Please use your own words to analyze the following statistics and pick the best performing portfolio

1) Please use your own words to explain what a hedge ratio

\begin{tabular}{|c|c|c|c|c|} \hline Net Funding Cost & Portfolio A & Portfolio B & Portfolio C & Portfolio D \\ \hline Average & 74.6 & 77.4 & 80.2 & 69.1 \\ \hline Median & 59.2 & 60.2 & 62.7 & 52.8 \\ \hline 95% Percentile & 149.2 & 154.7 & 163.0 & 135.4 \\ \hline At Risk & 64.5 & 62.7 & 61.3 & 56.2 \\ \hline Std Dev & 46.8 & 43.1 & 43.1 & 39.0 \\ \hline \end{tabular}

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