Which of the Following Is True

question 7

Multiple Choice

Which of the following is true?

• A) The optimal hedge ratio is the slope of the best fit line when the spot price (on the y-axis) is regressed against the futures price (on the x-axis).
• B) The optimal hedge ratio is the slope of the best fit line when the futures price (on the y-axis) is regressed against the spot price (on the x-axis).
• C) The optimal hedge ratio is the slope of the best fit line when the change in the spot price (on the y-axis) is regressed against the change in the futures price (on the x-axis).
• D) The optimal hedge ratio is the slope of the best fit line when the change in the futures price (on the y-axis) is regressed against the change in the spot price (on the x-axis).

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Definitions:

Systemic Circuit

Circuit through which blood flows from the heart to the body tissues and back.

Circulatory System

The body's system responsible for the transportation of blood, nutrients, gases, and wastes, consisting of the heart, blood vessels, and blood.

Interstitial Fluid

Interstitial fluid is the liquid found in the spaces between cells, serving as the immediate microenvironment that allows for movement of ions, proteins, and nutrients.

Lymphatic System

A network of tissues and organs, including lymph nodes, vessels, and fluid (lymph), that helps rid the body of toxins and waste, facilitating immune responses.