Please Answer the questions below with Ture or False:

1. If the target beta exceeds the underlyings beta, then the manager will go long the futures contract.

2.Based on the price sensitivity hedge ratio, if the modified duration of the futures contract increases (assumed to be positive), then the optimal number of futures contracts increases. Assume the durations are positive.

3.The price sensitivity hedge ratio uses the durations of the spot and futures positions.

4.A hedge that involves the use of a futures contract on an instrument that is different from the instrument being hedged is called a cross hedge.