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The ________ Method Is Equivalent to a Lottery System in Which

question 53

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The ________ method is equivalent to a lottery system in which names are placed in a container,the container is shaken,and the names of the winners are then drawn out in an unbiased manner.


Definitions:

Interest Rate Futures

Financial derivatives contracts that lock in the future delivery of an asset based on interest rates, commonly used for hedging and speculating on future interest rate movements.

Hedge

An investment made to reduce the risk of adverse price movements in an asset, often involving derivatives like options and futures.

Basis Risk

Risk attributable to uncertain movements in the spread between a futures price and a spot price.

Short Hedger

An investor who enters into futures contracts to protect against potential price declines in an asset they hold.

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