Question: Using the information in Table 4.9 about Scenario C: a. Using your answer to the previous question, use equation (4.7) to compute the variance-minimizing hedge

Using the information in Table 4.9 about Scenario C:
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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