Which of the Following Are Needed to Determine the Number

question 38

Multiple Choice

Which of the following are needed to determine the number of stock index futures required to cross-hedge a stock portfolio?
I. standard deviation of the stock portfolio
II. beta of the stock portfolio
III. value of the index futures contract
IV. value of the stock portfolio

• A)I and III only
• B)II and IV only
• C)I, II, and III only
• D)II, III, and IV only
• E)I, III, and IV only

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Definitions:

Numerical Relationships

The association or connection between numbers, often expressed through formulas or equations.

Spatial Information

Data or details that relate to the position, area, and size of things within a given space.

Persuasive

Text or speech aimed at convincing the reader or listener to adopt a particular opinion or carry out a specific action.

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The process of legally registering a brand name, logo, or slogan to protect it from being used without permission.