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NEW QUESTION: 1
An asset has a volatility of 10% per year. An investment manager chooses to hedge it with another asset that has a volatility of 9% per year and a correlation of 0.9. Calculate the hedge ratio.
A. 1.2345
B. 0.9
C. 0.81
D. 0
Answer: D
Explanation:
Explanation
The minimum variance hedge ratio answers the question of how much of the hedge to buy to hedge a given position. It minimizes the combined volatility of the primary and the hedge position. The minimum variance hedge ratio is given by the expression [ (x) / (y) ] * (x,y)]. Effectively, this is the same as the beta of the primary position with respect to the hedge.
In this case, the hedge ratio is = 10%/9% * 0.9 = 1
NEW QUESTION: 2
귀사는 AWS로 작업하기를 원하지만 아직 계정을 개설하지 않았습니다. 다음 중 귀하가 지역 개발을 시작해야 하는 서비스는 무엇입니까?
A. Amazon Simple Queue Service
B. Amazon DynamoDB
C. Amazon CloudSearch
D. Amazon Simple Email Service
Answer: B
NEW QUESTION: 3
On an H.460 network, H.245 TCP connections are established between private network terminals and theTS.()
A. TRUE
B. FALSE
Answer: A
NEW QUESTION: 4
John wants to send Marie an email that includes sensitive information, and he does not trust the network that he is connected to. Marie gives him the idea of using PGP. What should John do to communicate correctly using this type of encryption?
A. Use his own public key to encrypt the message.
B. Use Marie's public key to encrypt the message.
C. Use Marie's private key to encrypt the message.
D. Use his own private key to encrypt the message.
Answer: B
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