Which of the Following Conclusions Are Correct

question 3

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 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 British asset cannot 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:

Gun Control

Laws or policies designed to regulate the manufacture, sale, transfer, possession, modification, or use of firearms by civilians.

Men

Refers to adult human males, often discussed in studies related to gender differences, social roles, or demographic analysis.

Sampling Distribution

Distribution of statistics for samples randomly drawn from populations.

Sample Means

The arithmetic average of a set of values taken from a larger population, used in statistics to estimate the population mean.