What Are Needed to Find the Number of Stock Index

question 109

Multiple Choice

What are needed to find the number of stock index futures for cross-hedging a stock portfolio?
I. Standard deviation of the stock portfolio
II. Beta of the stock portfolio
III. Value of the index futures contract
IV. Value of the stock portfolio

• A) I and III
• B) II and IV
• C) II, III and IV
• D) I, II and III
• E) I, II, III and IV

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Definitions:

Cerebellum

A part of the brain located at the back of the skull which is responsible for coordinating voluntary movements and maintaining balance, posture, and equilibrium.

Biological Clock

An internal timing mechanism in organisms that controls the cycle of daily activities, such as sleep and wakefulness, based on a roughly 24-hour period.

Subjective Night

The time during a 24-hour period when the biological clock is telling a person to go to sleep.

Melatonin Flux

Variations in the levels of melatonin, a hormone that regulates sleep-wake cycles, typically influenced by light exposure.