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pantera1 [17]
3 years ago
6

Suppose that the standard deviation of quarterly changes in the prices of a commodity is $0.65, the standard deviation of quarte

rly changes in a futures price on the commodity is $0.81, and the coefficient of correlation between the two changes is 0.8. What is the optimal hedge ratio for a three-month contract? What does it mean?
Business
1 answer:
Natasha_Volkova [10]3 years ago
6 0

Answer:

The optimal hedge is 0.642 and it means that the size of the future positions should be 64.2% of the exposure of the company in a 3 month-hedge.

Explanation:

optimal hedge ratio

= coefficient of correlation*(standard deviation of quarterly changes in the prices of a commodity/standard deviation of quarterly changes in a futures price on the commodity)

= 0..8*(0.65/0.81)

= 0.642

Therefore, The optimal hedge is 0.642 and it means that the size of the future positions should be 64.2% of the exposure of the company in a 3 month-hedge.

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A 63-year-old man presents to the office with hematuria, hesitancy, and dribbling. Digital rectal exam (DRE) reveals a moderatel
storchak [24]

Answer:

A 63-year-old man presents to the office with hematuria, hesitancy, and dribbling.

Digital rectal exam (DRE) reveals a moderately enlarged prostate that is smooth.

The PSA is 1.2.

The most appropriate management strategy to follow at this time is:

Explanation:

This 63 year-old-man is at  his elderly stage, meaning that it may have brought the enlargement of the prostate, as the DRE revealed, squeezing the urethra moderately and causing difficulty with urination such as a intermittent flow or dribbling, hematuria and hesitancy, so an urine flow study might be helpful to detect reduced urine flow associated with BPH (Benign Prostatic Hyperplasia).

Although his PSA level of 1.2 nanograms per milliliter (ng/mL) of blood is still in the normal range, a test must be performed to determine how fast is the PSA level is increasing, as it is associated with prostate cancer.

A questionnaire must be filled out to determine the type and severity of symptoms and if they have impacted his routine life.

Digital rectal examination (DRE): The physician inserts a gloved finger into the rectum (located next to the prostate) and feels the back of the prostate. Prostate cancers can sometimes be detected as lumps or bumps on the prostate here.

Depending on the results the patient could get a cystoscopy, which is a test that allows the physician to inspect the inside of the prostate, urethra channel and bladder, using a mini-camera inserted within a thin tube.

If the doctor finds cancer suspicious data, he might order a transrectal ultrasound, a transabdominal ultrasound or a prostate magnetic resonance imaging (MRI).

BPH is the most common urologists diagnosed disorder of the prostate gland in males between the ages of 45 and 76.

7 0
4 years ago
​A restaurant, which operates in a perfectly competitive market, is evaluating whether it should serve breakfast on a daily ba
riadik2000 [5.3K]

Answer:

TRUE

Explanation:

A perfect competition is characterised by many buyers and sellers of homogeneous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.  

In the long run, firms earn zero economic profit.  If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.  

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.  

In the short run, the firm would continue to operate if its revenue covers variable cost. if it doesn't it would shut down.

8 0
3 years ago
Match the pairs to their respective categories.
baherus [9]

Answer:

PAIRS OF SUBSTITUTES

tea - coffee  

butter - margarine

petroleum - natural gas

PAIRS OF COMPLEMENTARY GOODS

printer - ink cartridge

 

pen-refill

Explanation:

Substitutes are goods that can replace other goods.   On the other hand, complementary goods go hand in hand with one another.  This implies that while substitutes can be used in isolation, complementary goods cannot be used in isolation of each other.  For example, if one needs a pen, they also require a refill.

4 0
3 years ago
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anastassius [24]

Answer:

if they have a high variable cost, the business will make no money and would probably start to loose money, to the point where they go out of business. So they have to keep the variable cost low, manufacture their products with a low price, and sell their products high to make money and keep the business going.

7 0
3 years ago
Which of the following provides the same protection as safety glasses?
ziro4ka [17]

None of the above (neither bifocals,neither regular glasses, neither sunglasses) provides the same protection as safety glasses.

Safety glasses are special type of functional protective eyewear that usually enclose or protect the area surrounding the eye. They part of the Personal Protective Equipment (PPE), used to protect the worker to from injuries.

3 0
3 years ago
Read 2 more answers
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