Suppose That the Standard Deviation of Monthly Changes in the Price

question 7

Short Answer

Suppose that the standard deviation of monthly changes in the price of commodity A is $2. The standard deviation of monthly changes in a futures price for a contract on commodity B which is similar to commodity A) is $3. The correlation between the futures price and the commodity price is 0.9. What hedge ratio should be used when hedging a one-month exposure to the price of commodity A? _ _ _ _ _ _

---

Definitions:

Nursing Quality Improvement

Efforts within the nursing profession to improve the quality of patient care, often through analysis of practices and implementation of systematic changes.

Magnet-Designated Hospital

A healthcare organization recognized for excellence in nursing, patient outcomes, and patient satisfaction, awarded by the American Nurses Credentialing Center.

Nursing-Sensitive Outcome

Outcomes that depend directly on nursing care interventions, such as patient health improvements or reductions in complications, highlighting the importance of nursing practices.

Pressure Ulcers

Pressure ulcers, also known as bedsores, are injuries to skin and underlying tissue resulting from prolonged pressure on the skin.