Which of the Following Conclusions Are Correct

question 93

Multiple Choice

Which of the following conclusions are correct?

• A)Most of the volatility of the dollar value of the British asset can be removed by hedging exchange risk because b²[Var(S)] and Var(e) are 236,717 ($)² and 493,751 ($)² respectively.
• B)Most of the volatility of the dollar value of the British asset can not be removed by hedging exchange risk because b²[Var(S)] and Var(e) are 236,717 ($)² and 493,751 ($)² respectively.
• C)Most of the volatility of the dollar value of the British asset can NOT be removed by hedging exchange risk because b²[Var(S)] and Var(e) are 125,000 ($)² and -127,500 ($)² respectively.
• D)Most of the volatility of the dollar value of the British asset can be removed by hedging exchange risk because b²[Var(S)] and Var(e) are 125,000 ($)² and -127,500 ($)2 respectively.

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Definitions:

Federal Bankruptcy Exemptions

Specific exemptions provided by federal law that allow a debtor to protect certain types of property from being seized and sold off by creditors during the bankruptcy process.

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Creditors who have extended credit without obtaining specific collateral, ranking below secured creditors in claims on assets.

Individual Retirement Account

A financial tool for individuals to save for retirement in a tax-advantaged way.

Unsecured Creditors

Creditors who have extended credit without securing collateral, putting them at greater risk if the borrower defaults.