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.
Answer:
0.43
Explanation:
The computation of the weight of Security A for the minimum variance portfolio is shown below:
Weight of security A is
= (Standard deviation of Security B) ÷ (Sum of the standard deviation of securities)
= (12%) ÷ (16% + 12%)
= (12%) ÷ (28%)
= 0.43
We simply applied the above formula so that the weight of Security A
They probably feel good about themselves.
Answer:
The debit balance for the vehicles account was $20,000, and the credit balance of accumulated depreciation account was $18,000.
- Dr Vehicles account 20,000
- Cr Accumulated Depreciation Vehicles account 18,000
then the van was sold for $2,000
- Dr Cash account 2,000
- Cr vehicles account 2,000
Since the carrying value of the van was $2,000 (= $20,000 - $18,000) and the van was sold for $2,000, Patel had no gain or loss from this transaction.
Answer:
1. Form 10-Q ⇒ <u>Quarterly report filed by public companies with the SEC that contains additional unaudited financial information. </u>
2. Quarterly report. ⇒ <u>Brief unaudited report for quarter normally containing! summary income statement and balance sheet.</u>
3. Press release ⇒ <u>Written public news announcement that is normally distributed to major news services. </u>
4. Annual report ⇒ <u>Report containing the four basic financial statements to the year, related notes, and often statements by management and auditors.</u>
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5. Form 10-K ⇒ <u>Annual report filed by public companies with the SEC that contains additional detailed financial information.</u>
6. Form 8-K ⇒<u> Report of special events (e.g., auditor changes, mergers) filed by public companies with the SEC.</u>