Question: Write down the formula for calculating hedge ratio according to the nave and optimal (econometric) methods. Calculate the nave hedge ratio ( HR N )

Write down the formula for calculating hedge ratio according to the nave and optimal (econometric) methods. Calculate the nave hedge ratio (HR^N) and econometric (optimal) hedge ratio (HR*) using the data in the spreadsheet (show your calculation both in the spread sheet and below). (3 2 = 6 points)

note: I already have the calculations for the spread sheet so disinclude that. I just need the the formula with variables

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