Which of the Following Conclusions Are Correct

question 69

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 1,125,000 ($)² and 2,500 ($)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:

Large Animals

Typically refers to animals of a considerable size, often used in contexts related to veterinary science, zoology, or animal husbandry.

Large-Sample Z

A statistical test used when comparing sample proportions or means with a large sample size, typically using a Z-distribution.

Confidence Interval

A range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter with a certain degree of confidence.

Confidence Interval

A range of values, derived from the sample data, within which the population parameter is expected to lie, with a specified level of confidence.