What happens to the hedge ratio, if the correlation between the price movements of the underlying asset

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What happens to the hedge ratio, if the correlation between the price movements of the underlying asset and the futures price is zero.

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Fundamentals of Investments

ISBN: 978-0132926171

3rd edition

Authors: Gordon J. Alexander, William F. Sharpe, Jeffery V. Bailey

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Posted Date: Dec 18, 2020 02:19 AM

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What happens to the hedge ratio, if the correlation between the price movements of the underlying asset

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Hedge ratio is the ratio or comparative value of an open positions hedge to the overall posit... View the full answer

Fundamentals of Investments

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