Question: What technique is commonly used to estimate the hedge ratio? What statistical measure is an indicator of the confidence that should be placed in the
What technique is commonly used to estimate the hedge ratio? What statistical measure is an indicator of the confidence that should be placed in the estimated hedge ratio? What is the interpretation if the estimated hedge ratio is greater than 1? Less than 1?
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A common method to estimate the hedge ratio is to regress recent changes in s... View full answer
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