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:

Upper Air Currents

Large-scale movements of air that occur in the upper part of the atmosphere, influencing weather patterns and climate.

Air Convergence

The meeting and combining of airflow from different directions, often leading to cloud formation and precipitation.

Air Divergence

The movement of air away from a particular region, often associated with descending air and fair weather.

Trough Of Low Pressure

A long, extended region in the atmosphere where the atmospheric pressure is lower than the surrounding area.