Using the information in Table 4.9 about Scenario C: a. Using your answer to the previous question,
Question:
a. Using your answer to the previous question, use equation (4.7) to compute the variance-minimizing hedge ratio.
b. Run a regression of revenue on price to compute the variance-minimizing hedge ratio.
c. What is the variability of optimally hedged revenue?
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a Using equation 47 and the values of the correlation coefficient and standard deviation of ...View the full answer
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