Refer Again to the Data in Question 23

question 8

Multiple Choice

Refer again to the data in Question 23.The minimum-variance hedge is a

• A)Long USD/EUR forward.
• B)Short USD/EUR forward.
• C)Long USD/CHF forward.
• D)Short USD/CHF forward.

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Definitions:

Baumol's Disease

A phenomenon in which wages in jobs that have not experienced increases in labor productivity are driven up by wages in jobs that have experienced productivity growth, leading to higher costs in non-productive sectors.

Job Training Programs

Initiatives offered by governments, organizations, or employers to equip individuals with the skills and knowledge needed for specific jobs or careers.

Productivity Growth

A rise in production efficacy, frequently quantified by the amount of product generated per input unit over a duration.

Economy Sector

A segment of the economy, often categorized into primary (raw materials), secondary (manufacturing), tertiary (services), and quaternary (information) sectors.