Which of the Following Conclusions Are Correct

question 84

Multiple Choice

Which of the following conclusions are correct?

• A)Most of the volatility of the dollar value of the Israeli 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 Israeli asset cannot 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 Israeli asset cannot be removed by hedging exchange risk because b²[Var(S)] and Var(e) are 8.22 ($)² and 59,211 ($)², respectively.
• D)Most of the volatility of the dollar value of the Israeli asset can be removed by hedging exchange risk because b²[Var(S)] and Var(e) are 8.22 ($)² and 59,211 ($)² respectively.

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Definitions:

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The practice or tendency of maintaining a standard of living or achievements comparable to those of one's peers or neighbors.

Joneses

A colloquial term referring to neighbors or societal peers whose social and economic status influence others to try to keep up or surpass them, often leading to consumerism and competition.

Groupthink

A psychological phenomenon in which the desire for group conformity results in an irrational or dysfunctional decision-making outcome.

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The catastrophic breakdown of the Space Shuttle Challenger shortly after its launch in 1986, resulting in the deaths of all seven crew members.